Section 8 Fair Market Rent (FMR) for ZIP 28306 - 2027

Investment Score for ZIP 28306

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	$1,120
1 Bedroom	$1,140
2 Bedrooms	$1,270
3 Bedrooms	$1,670
4 Bedrooms	$2,050
5 Bedrooms	$2,378
6 Bedrooms	$2,663
7 Bedrooms	$2,876
8 Bedrooms	$3,020

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,270	$133,913	0.95%	C
3BR	$1,670	$231,221	0.72%	D
4BR	$2,050	$357,336	0.57%	F
5BR	$2,378	$477,288	0.5%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 28306 (Fayetteville, NC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 28306 is set by HUD for 2026 and ranges from $980 for a zero-bedroom unit to $1880 for a four-bedroom unit. For a two-bedroom unit, the FMR is $1120, which represents 19.9% of the median household income of $67,544. This suggests that the FMR is relatively affordable compared to the median income, but it still leaves a significant portion of the population potentially struggling to cover rent costs without assistance. Actual rents in the area can be gauged by comparing the FMR to the Zillow median price for a two-bedroom home, which stands at $133,149. The price-to-FMR ratio of 9.9x indicates that the median home price is nearly ten times the monthly rent for a similar-sized rental unit. This high ratio suggests that the rental market may be somewhat inflated relative to the FMR, creating potential challenges for voucher holders who might find it difficult to secure units within their budget. #### Affordability & Renter Profile In ZIP code 28306, 34.3% of the population are renters, indicating a substantial demand for rental housing. With a total population of 43,042, this translates to approximately 14,750 renters. The occupancy rate of 91.3% suggests that the rental market is fairly tight, with most available units being occupied. This tight market condition could lead to upward pressure on rents, making it harder for low-income households to find affordable housing options. Given the median household income of $67,544, many residents would likely struggle to afford a two-bedroom rental unit priced at $1120 per month. This is particularly true for those relying solely on their income without additional financial assistance. The high proportion of renters and the tight occupancy rate imply that there is a strong need for affordable housing solutions, especially for those utilizing Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 28306 offers a mixed landscape. The FMR for a two-bedroom unit is $1120, while the median home price is $133,149. To determine if this is a cash-flow positive market, we must consider the potential rental income versus the cost of acquiring and maintaining a property. Assuming a typical mortgage payment for a $133,149 home at 4% interest over 30 years, the monthly mortgage payment would be around $630. Adding in average maintenance costs of $100 per month, property taxes of $150 per month, and insurance of $50 per month, the total monthly expenses would be approximately $930. At an FMR of $1120, this would leave a net cash flow of about $190 per month, which is modest but positive. However, the investment grade depends on several factors including the stability of the tenant base, the likelihood of rent increases, and the overall economic health of the area. Given the high proportion of renters and the tight market, the risk of vacancy is lower, which can be seen as a positive factor for investors. Additionally, the potential for rent increases due to the tight market conditions could enhance future cash flows. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units such as one-bedroom and zero-bedroom apartments. These units have lower FMRs ($990 and $980 respectively), which means they are more likely to be within the budget of voucher holders. This strategy can help ensure higher occupancy rates and better cash flow. 2. **Consider Location-Specific Factors**: While the overall market appears tight, certain neighborhoods within ZIP code 28306 may offer more affordable options. Investors should conduct detailed neighborhood analyses to identify areas where rents are closer to the FMR. This will allow them to maximize their returns while remaining competitive in the rental market. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can provide valuable insights into the availability and usage of Section 8 vouchers. This can help investors understand the demand for subsidized housing and tailor their offerings accordingly. For instance, knowing the number of active vouchers in the area can inform decisions about the size and type of units to develop. #### Bottom Line For Section 8-focused investors, ZIP code 28306 presents a moderate opportunity. The market is tight, with a high occupancy rate and a significant proportion of renters. However, the high price-to-FMR ratio poses challenges for securing units within voucher limits. **Recommendation**: **Hold**. Investors should maintain a cautious approach, focusing on smaller units and engaging with local housing authorities to ensure alignment with the needs of voucher holders. While there is potential for positive cash flow, the market dynamics suggest that careful selection and management of properties are essential to success.

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.