Location: Charlotte-Concord-Gastonia, NC | Metro: Charlotte-Concord-Gastonia, NC-SC HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,670 |
| 1 Bedroom | $1,740 |
| 2 Bedrooms | $1,890 |
| 3 Bedrooms | $2,310 |
| 4 Bedrooms | $2,940 |
| 5 Bedrooms | $3,410 |
| 6 Bedrooms | $3,819 |
| 7 Bedrooms | $4,125 |
| 8 Bedrooms | $4,331 |
The analysis for ZIP code 28299 in North Carolina focuses on deriving the potential Section 8 cap rate and comparing it with the market rent scenario, although some data points are currently unavailable.
The Fair Market Rent (FMR) for a two-bedroom apartment in ZIP 28299 for fiscal year 2024 is set at an annualized rate of $1650. This figure represents the government's benchmark for rental assistance under the Section 8 program. However, without the median home value, we cannot calculate the exact gross yield for this scenario. The gross yield would be derived by dividing the annual rent by the median home value, but this calculation is impossible due to the lack of necessary data.
Regarding the market rent, the data is also not available, which means we cannot provide a direct comparison to the Section 8 FMR in terms of gross yield. The absence of the median home value and market rent figures hinders a comprehensive analysis of the potential returns in this area.
Despite these limitations, it is important to consider the implications of the missing data. Without knowing the median home value and the market rent, it is difficult to ascertain whether the Section 8 FMR of $1650 per month is higher or lower than what could be obtained through market rates. Additionally, the unknown percentage of renter density and the days on market (DOM) prevent us from making a definitive judgment on the realism of either scenario.
To make informed decisions, investors should seek out local real estate agents or use online resources to find the most recent median home values and market rents for ZIP 28299. This additional information will allow them to calculate the gross yields and compare them directly, providing a clearer picture of the investment potential in this area.
In conclusion, while the Section 8 FMR provides a fixed income stream, the lack of other critical data points such as median home value and market rent makes it challenging to determine which scenario offers a better gross yield. The decision should be based on the complete set of financial metrics and local market conditions.
Data Sources: FMR data from HUD (2027).
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.