Section 8 Fair Market Rent (FMR) for ZIP 28212 - 2027

Investment Score for ZIP 28212

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,540
1 Bedroom	$1,610
2 Bedrooms	$1,750
3 Bedrooms	$2,140
4 Bedrooms	$2,720
5 Bedrooms	$3,155
6 Bedrooms	$3,534
7 Bedrooms	$3,817
8 Bedrooms	$4,008

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,610	$129,095	1.25%	A
2BR	$1,750	$186,494	0.94%	C
3BR	$2,140	$320,838	0.67%	D
4BR	$2,720	$377,477	0.72%	D
5BR	$3,155	$449,884	0.7%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 28212 (Charlotte, NC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 28212 is set by HUD for 2026, with the following rates: - 0BR: $1480 - 1BR: $1550 - 2BR: $1700 - 3BR: $2090 - 4BR: $2660 These figures represent the maximum amount that a Section 8 voucher holder can pay for rent. However, it is important to note that these rates are significantly lower than the actual market rents. For instance, the Zillow median price for a 2BR unit is $186,549, which translates to a monthly mortgage payment of approximately $900-$1000, depending on interest rates and loan terms. This means that landlords who accept Section 8 vouchers must be willing to rent their properties at a rate that is much lower than what they could potentially charge in the open market. Additionally, the 2BR FMR of $1700 represents only 38.7% of the median household income in the area ($52,723). This indicates that voucher holders have limited financial flexibility and may struggle to afford additional living expenses beyond rent. The constraints for voucher holders include strict income limits and the requirement to find housing within the FMR guidelines, which can be challenging given the high market rents. #### Affordability & Renter Profile ZIP code 28212 has a significant renter population, with 62.0% of residents being renters. This suggests a strong demand for rental housing in the area. The occupancy rate of 91.3% further supports the notion that the rental market is relatively tight, indicating that there is little excess capacity in the rental stock. Given the median household income of $52,723, many residents likely rely on Section 8 vouchers to make housing affordable. The high proportion of renters and the tight occupancy rate suggest that the market is competitive, with landlords having the upper hand due to the scarcity of available units. This dynamic makes it difficult for low-income households to secure housing without assistance. #### Investor Angle From an investor perspective, the ZIP code 28212 presents a mixed picture when considering cash flow and investment grade. The FMR rates are substantially lower than the market rents, which means that landlords who accept Section 8 vouchers will need to manage their properties carefully to ensure profitability. For example, the FMR for a 2BR unit is $1700, while the Zillow median price for a similar unit is $186,549. Given a typical price-to-rent ratio of 9.1x, the implied market rent would be around $2050 per month. Therefore, accepting a Section 8 voucher at $1700 would result in a significant discount compared to market rates. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the costs associated with property ownership, such as mortgage payments, property taxes, insurance, maintenance, and utilities. Assuming a mortgage payment of $900-$1000, property taxes of $200-$250, insurance of $100, and other miscellaneous costs of $150-$200, the total monthly cost would be around $1350-$1650. At an FMR of $1700, the cash flow would be positive but minimal, ranging from $50 to $350 per month. The investment grade for this ZIP code would be considered moderate. While there is a strong demand for rental housing, the reliance on Section 8 vouchers introduces additional administrative complexities and potential risks related to tenant behavior and government funding. Investors should weigh these factors against the potential for steady, albeit modest, returns. #### Specific Actionable Insights 1. **Target Smaller Units**: Given the high price-to-FMR ratio, focusing on smaller units like 0BR and 1BR apartments could provide better cash flow opportunities. These units typically have lower market rents and may be more aligned with the FMR guidelines. For instance, a 0BR unit with a market rent of $1400 would be close to the FMR of $1480, offering a more favorable margin for investors. 2. **Consider Property Location**: Within ZIP code 28212, certain neighborhoods may offer better opportunities for cash flow and tenant stability. Areas closer to public transportation, employment centers, and amenities might attract more stable tenants and command slightly higher rents within the FMR guidelines. 3. **Engage with Local Real Estate Agents**: To navigate the complexities of the Section 8 program and understand local market dynamics, engaging with experienced real estate agents who specialize in the Charlotte area can provide valuable insights. They can help identify properties that are more likely to appeal to voucher holders and offer guidance on lease terms and management practices. #### Bottom Line For Section 8-focused investors, ZIP code 28212 offers a moderate investment opportunity. The strong demand for rental housing and high proportion of renters make it a viable market, but the tight occupancy rate and high price-to-FMR ratio introduce challenges. **Recommendation**: Hold. While the market shows promise, the minimal cash flow at FMR levels and the administrative burden of managing Section 8 properties suggest that investors should proceed cautiously. Engaging in thorough due diligence and targeting specific neighborhoods or unit sizes can help mitigate some of these risks. This analysis is based solely on the provided data and does not account for external factors such as changes in local regulations, economic conditions, or broader housing market trends.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).

About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.