Section 8 Fair Market Rent (FMR) for ZIP 28214 - 2027

Investment Score for ZIP 28214

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	$1,710
1 Bedroom	$1,780
2 Bedrooms	$1,940
3 Bedrooms	$2,370
4 Bedrooms	$3,010
5 Bedrooms	$3,492
6 Bedrooms	$3,911
7 Bedrooms	$4,224
8 Bedrooms	$4,435

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,940	$238,439	0.81%	C
3BR	$2,370	$321,732	0.74%	D
4BR	$3,010	$383,721	0.78%	D
5BR	$3,492	$514,927	0.68%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 28214 (Charlotte, NC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 28214 is set by HUD for 2026, and it varies based on the number of bedrooms. For a two-bedroom apartment, the FMR is $1810, which represents 25.1% of the median household income in the area. This suggests that voucher holders have limited options when it comes to finding affordable housing. The actual rents in the market are significantly higher than the FMR. For instance, the Zillow median price for a two-bedroom home is $236,831, which translates into a monthly rent of approximately $1078 if we assume a typical mortgage payment (including principal, interest, taxes, and insurance). However, the price-to-FMR ratio is 10.9x, indicating that the actual rental costs are much higher than the FMR. Given these figures, voucher holders are constrained to a narrow range of properties that fall under the FMR threshold. They would likely struggle to find suitable housing in this market, especially considering that the average rent for a two-bedroom unit could be around $1980 (assuming a 10.9x multiple of the FMR), which is well above the $1810 limit. This means that landlords who want to participate in the Section 8 program must accept lower-than-market rates, which can be a significant disincentive. #### Affordability & Renter Profile ZIP code 28214 has a population of 43,837, with 24.3% being renters. The occupancy rate stands at 93.8%, suggesting a relatively tight rental market where demand is high relative to supply. Given the median household income of $86,447, the majority of residents can afford market-rate rentals, but those relying on Section 8 vouchers face challenges due to the high cost of living. The FMR for a two-bedroom unit is $1810, which is only 25.1% of the median household income. This indicates that the market is not particularly affordable for low-income renters. With the actual rents being so much higher, it is clear that there is a significant gap between what voucher holders can afford and what is available on the open market. This tight market condition makes it difficult for voucher holders to find suitable housing, as many units are priced beyond their means. #### Investor Angle From an investor’s perspective, the ZIP code 28214 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1810, while the actual market rent is estimated to be around $1980 (based on the 10.9x ratio). This means that landlords participating in the Section 8 program would need to accept a lower rent compared to the market rate, potentially reducing cash flow. However, the high occupancy rate of 93.8% suggests strong demand for rental properties, which could offset some of the financial drawbacks. To determine the investment grade, we need to consider the potential returns and risks. If an investor buys a property at the median price of $236,831 and rents it out at the FMR of $1810, they would need to ensure that the property generates enough income to cover expenses such as mortgage payments, maintenance, and property management. Assuming a typical mortgage payment of $1078, the remaining $732 would need to cover other costs. This leaves little room for profit unless the investor can manage the property efficiently and keep operating costs low. #### Specific Actionable Insights 1. **Focus on Properties Below FMR**: Investors should focus on acquiring properties that are below the FMR threshold for each bedroom category. For example, a two-bedroom unit priced at $1810 or less would be ideal for attracting Section 8 tenants. This ensures compliance with HUD regulations and maximizes the chances of renting out the property. 2. **Consider Multi-Family Units**: Given the high occupancy rate and the limited availability of affordable units, multi-family properties might offer better returns. A property with multiple units can spread the fixed costs across several tenants, improving overall cash flow. Additionally, multi-family units often have higher FMRs, making them more attractive to voucher holders. 3. **Engage with Local Housing Authorities**: To increase the likelihood of securing Section 8 tenants, investors should engage with local housing authorities and understand the process of becoming a Section 8 landlord. This includes familiarizing themselves with the requirements and ensuring that their properties meet the necessary standards. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 28214 is to **Hold**. While the market offers strong demand for rental properties, the high actual rents compared to the FMR make it challenging to find profitable investments. The tight market conditions mean that properties below the FMR are scarce, and the potential for cash flow is limited. Therefore, investors should carefully evaluate the costs and benefits before entering this market, and consider focusing on areas with a more favorable balance between FMR and actual rents.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.