Location: Fayetteville, NC | Metro: Fayetteville, NC HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,310 |
| 1 Bedroom | $1,340 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $1,940 |
| 4 Bedrooms | $2,390 |
| 5 Bedrooms | $2,772 |
| 6 Bedrooms | $3,105 |
| 7 Bedrooms | $3,353 |
| 8 Bedrooms | $3,521 |
The potential pitfalls of investing in ZIP 28302 under the Section 8 program begin with tenant turnover. With a Fair Market Rent (FMR) of $1290 for FY 2024, landlords should be prepared for frequent changes in occupancy due to the limited availability of market rent data. This uncertainty can lead to increased costs associated with tenant screening and move-in/move-out processes.
Vacancy exposure is another significant risk. The lack of specific data on days on market (DOM) indicates that there might be periods when properties remain vacant, which can result in lost rental income. Landlords must ensure they have financial reserves to cover these gaps.
The risk of deferred maintenance is also present. Without concrete figures on the typical home value and median income in ZIP 28302, it's challenging to predict the level of maintenance that tenants might be able to afford. Landlords should budget for regular property upkeep and repairs to maintain the quality and safety of their investments.
Despite these challenges, the high concentration of renters in ZIP 28302 presents an opportunity. A significant portion of residents rely on rental housing, which typically translates into higher demand for Section 8 vouchers. This demand can help stabilize occupancy rates and mitigate some of the risks associated with tenant turnover and vacancy.
Verdict: Moderate risk for a first-time Section 8 landlord in ZIP 28302.
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.