Location: Fayetteville, NC | Metro: Fayetteville, NC HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,300 |
| 1 Bedroom | $1,330 |
| 2 Bedrooms | $1,470 |
| 3 Bedrooms | $1,930 |
| 4 Bedrooms | $2,370 |
| 5 Bedrooms | $2,749 |
| 6 Bedrooms | $3,079 |
| 7 Bedrooms | $3,325 |
| 8 Bedrooms | $3,491 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,470 | $143,098 | 1.03% | B |
| 3BR | $1,930 | $204,070 | 0.95% | C |
| 4BR | $2,370 | $297,145 | 0.8% | D |
| 5BR | $2,749 | $518,706 | 0.53% | F |
U.S. Census Bureau data (2024)
52.9% of residents in ZIP code 28303, Fayetteville, NC, are renters, indicating a strong demand for rental properties. The $1270 Fair Market Rent (FMR) for Section 8 in zip FY 2024 is notably lower than the $1,474 Zillow Observed Rental Index (ZORI), suggesting that landlords can potentially charge higher rents outside of the Section 8 program. The median home value stands at $211,165, providing a solid base for investment properties in the area. However, the $58,223 median income paints a picture of affordability challenges for many residents, making subsidized housing options like Section 8 attractive. With a 55-day Days on Market (DOM) average, it's clear that properties take some time to sell, but the 0.3% price-cut share shows that once listed, significant reductions in asking price are uncommon, reflecting steady interest from buyers.
The disparity between the FMR and market rent highlights an opportunity for landlords to consider both avenues for maximizing their property's potential. While the Section 8 FMR of $1270 might seem low compared to the $1,474 ZORI, the stability and reliability of Section 8 tenants can be a compelling factor for landlords looking for long-term, consistent rental income. Additionally, the relatively high median home value of $211,165 suggests that there is equity to be had in owning properties in this area, even if they are rented under the Section 8 program.
Given the 52.9% renter share and the median income of $58,223, it's evident that many residents rely on affordable housing solutions. This context supports the continued relevance of the Section 8 program in Fayetteville, NC. The 55-day DOM average and low 0.3% price-cut share indicate that the local real estate market is stable and not prone to rapid depreciation, which is reassuring for investors.
Verdict: For landlords and small-portfolio investors in ZIP 28303, participating in the Section 8 program can provide a reliable stream of income, though market rents offer higher potential returns.
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.