Section 8 Fair Market Rent (FMR) for ZIP 28314 - 2027

Investment Score for ZIP 28314

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	$1,440
1 Bedroom	$1,470
2 Bedrooms	$1,630
3 Bedrooms	$2,140
4 Bedrooms	$2,630
5 Bedrooms	$3,051
6 Bedrooms	$3,417
7 Bedrooms	$3,690
8 Bedrooms	$3,875

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	$1,630	$147,913	1.1%	B
3BR	$2,140	$215,678	0.99%	C
4BR	$2,630	$290,383	0.91%	C
5BR	$3,051	$373,590	0.82%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 28314 (Fayetteville, NC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 28314 is set by HUD for 2026. For a two-bedroom unit, the FMR is $1380, which represents 26.6% of the median household income of $62,249. This indicates that the FMR is relatively affordable for the average household in the area. However, the actual rent prices can vary significantly. According to Zillow, the median price for a two-bedroom rental property in 28314 is $147,740, which translates to a monthly rent of approximately $1231 based on a typical mortgage payment. The price-to-FMR ratio is 8.9x, suggesting that the median home value is nearly nine times higher than the FMR for a two-bedroom unit. This means that many properties in the area are priced well above the FMR, creating significant constraints for voucher holders who can only pay up to the FMR amount. Therefore, voucher holders are likely to face challenges finding suitable housing within their budget. #### Affordability & Renter Profile ZIP code 28314 has a population of 55,834, with 52.6% of residents being renters. This high percentage of renters suggests a strong demand for rental housing in the area. The occupancy rate of 91.9% further supports this notion, indicating that the majority of available units are already occupied. Given the median household income of $62,249, it is clear that many residents rely on affordable housing options. The FMR for a two-bedroom unit at $1380 is a critical benchmark for affordability. However, the high price-to-FMR ratio of 8.9x implies that the market is tight and that many rental units are priced beyond what most households can afford without assistance. This tight market makes it challenging for low-income families to find affordable housing, especially those relying solely on their income without additional subsidies like Section 8 vouchers. #### Investor Angle From an investor perspective, the FMR serves as a guideline for potential rental income. The FMR for a two-bedroom unit is $1380, which is slightly below the Zillow median rent of $1231 when considering the median home value. However, the price-to-FMR ratio of 8.9x suggests that the purchase price of properties is much higher than the rent they could command at FMR levels. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with owning a rental property. These include mortgage payments, property taxes, insurance, maintenance, and other operational costs. Assuming a median home value of $147,740 and a typical mortgage rate, the monthly mortgage payment would be around $1231, which is close to the FMR but does not account for other expenses. Property taxes, insurance, and maintenance costs can easily add another $200-$300 per month, making it difficult to achieve positive cash flow at the FMR level. Therefore, the investment grade for this ZIP code appears to be low, as the high purchase prices relative to the FMR make it challenging to generate sufficient rental income to cover all expenses. #### Specific Actionable Insights 1. **Focus on Affordable Units**: Investors should focus on acquiring properties that are priced closer to the FMR levels. For example, a two-bedroom unit priced at $1380 or less would be more attractive to Section 8 voucher holders and would have a better chance of generating positive cash flow. 2. **Consider Smaller Units**: Given the high price-to-FMR ratio, smaller units such as one-bedroom or studio apartments might offer better opportunities. The FMR for a one-bedroom unit is $1230, which is lower than the median rent for a two-bedroom unit. This could provide a more balanced cash flow scenario, especially if the purchase price is proportionally lower. 3. **Location-Specific Strategies**: Within ZIP code 28314, certain neighborhoods may have lower property values and thus more favorable price-to-FMR ratios. Conducting a detailed neighborhood analysis could identify pockets where the investment grade is higher due to lower property prices. #### Bottom Line Based on the provided data, the recommendation for Section 8-focused investors in ZIP code 28314 is to **skip** this market. The high price-to-FMR ratio and the tight rental market suggest that achieving positive cash flow will be challenging. Additionally, the limited number of units that fall within the FMR range reduces the pool of viable investment opportunities. While there is a significant demand for rental housing, the current pricing structure makes it difficult for investors to profitably operate in this ZIP code using Section 8 vouchers alone.

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.