Section 8 Fair Market Rent (FMR) for ZIP 28273 - 2027

Investment Score for ZIP 28273

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	$1,940
1 Bedroom	$2,020
2 Bedrooms	$2,200
3 Bedrooms	$2,690
4 Bedrooms	$3,420
5 Bedrooms	$3,967
6 Bedrooms	$4,443
7 Bedrooms	$4,798
8 Bedrooms	$5,038

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	$2,200	$253,674	0.87%	C
3BR	$2,690	$352,992	0.76%	D
4BR	$3,420	$433,525	0.79%	D
5BR	$3,967	$529,417	0.75%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 28273 (Charlotte, NC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 28273 in Charlotte, NC, is set by HUD for 2026 as follows: - 0BR: $1860 - 1BR: $1940 - 2BR: $2130 (29.3% of median income) - 3BR: $2620 - 4BR: $3330 To understand how these figures compare to actual rents, we can look at the Zillow median price for a 2BR property, which stands at $253,419. The price-to-FMR ratio for a 2BR unit is 9.9x, indicating that the median home value is significantly higher than the rent. This suggests that the actual rental market might be above the FMR levels, especially considering the high median home value. HUD’s FMRs are designed to reflect the average rent for standard quality housing in a given area. However, in a competitive market like Charlotte, actual rents often exceed these figures. For instance, if the FMR for a 2BR unit is $2130, but the actual market rent is higher due to demand, Section 8 voucher holders may face challenges finding suitable housing. They are constrained by the voucher amount, which means landlords must accept the voucher without charging additional rent beyond the FMR. #### Affordability & Renter Profile ZIP code 28273 has a population of 50,966, with 49.7% of residents being renters. This indicates a substantial rental market, suggesting that there is a significant demand for rental properties. The occupancy rate of 94.3% further supports this, showing that most units are occupied, leaving little room for vacancy. Given the median household income of $87,350, the affordability of housing is a critical issue. The FMR for a 2BR unit is $2130, which represents 29.3% of the median income. This implies that for many residents, particularly those relying on Section 8 vouchers, the cost of renting a 2BR unit is a considerable portion of their income. The tight market conditions mean that there is likely a shortage of affordable rental units. This could lead to increased competition among voucher holders and other low-income renters, making it difficult for them to find housing that fits within their budget. Landlords who accept Section 8 vouchers may have a steady stream of tenants but will also need to ensure that their rents align closely with the FMR to avoid losing potential tenants. #### Investor Angle From an investor perspective, the key question is whether the ZIP code offers positive cash flow at the FMR levels. Given the high median home value and the price-to-FMR ratio of 9.9x, it is likely that actual market rents are above the FMR. However, for Section 8-focused investors, the FMR is the ceiling for rental income. To determine the investment grade, we need to consider the costs associated with owning and maintaining a rental property. If we assume a typical 2BR unit in 28273 is valued at $253,419, and the annual mortgage payment is around $12,000 (based on a 5% interest rate), the monthly mortgage payment would be approximately $1000. Adding in typical operating expenses such as property taxes, insurance, maintenance, and utilities, which might total another $500 per month, brings the total monthly cost to about $1500. At the FMR of $2130, the net cash flow would be $630 per month, or $7560 annually. This suggests that while the market rent may be higher, the FMR-based rent still provides a positive cash flow for investors willing to accept Section 8 vouchers. However, the investment grade would depend on the ability to manage the property efficiently and the willingness of landlords to accept vouchers. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units such as 0BR and 1BR apartments. These units typically have lower FMRs, which can help manage costs better. For example, a 0BR unit with an FMR of $1860 would still provide a positive cash flow if the total monthly expenses are below this figure. 2. **Consider Location Within the ZIP Code**: Not all areas within ZIP 28273 may be equally desirable. Investors should conduct a thorough analysis of submarkets within the ZIP code to identify areas where rents are closer to the FMR. This can help in securing more stable tenancies and potentially higher occupancy rates. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can be beneficial. They can provide insights into the number of available vouchers and the process of becoming a preferred landlord. This can help in securing a steady stream of tenants and managing the property more effectively. #### Bottom Line For Section 8-focused investors, ZIP code 28273 presents a mixed picture. While the high median home value and price-to-FMR ratio suggest a competitive market, the positive cash flow at FMR levels makes it a viable option. The recommendation would be to **Buy**, but with a focus on smaller units and strategic location selection within the ZIP code. Engaging with local housing authorities can also enhance the chances of success in this market. In summary, despite the tight market conditions and high median home values, the ZIP code offers opportunities for investors willing to work within the constraints of Section 8 vouchers. The key is to manage costs effectively and target the right segments of the rental market.

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.