Location: Lee County, NC | Metro: Pinehurst-Southern Pines, NC MSA
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 | $1,260 |
| 1 Bedroom | $1,280 |
| 2 Bedrooms | $1,490 |
| 3 Bedrooms | $2,040 |
| 4 Bedrooms | $2,480 |
| 5 Bedrooms | $2,877 |
| 6 Bedrooms | $3,222 |
| 7 Bedrooms | $3,480 |
| 8 Bedrooms | $3,654 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,490 | $188,146 | 0.79% | D |
| 3BR | $2,040 | $295,673 | 0.69% | D |
| 4BR | $2,480 | $367,001 | 0.68% | D |
| 5BR | $2,877 | $402,636 | 0.71% | D |
U.S. Census Bureau data (2024)
The analysis for ZIP code 28326, centered around Cameron, NC, reveals a significant disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for the area, as set by the Department of Housing and Urban Development (HUD) for fiscal year 2024, is $1570. In contrast, the market rent, measured by the Zillow Rent Index (ZORI), stands at $1888. This creates a gap of $318, or approximately 20%, where landlords must accept a lower rent rate if they wish to participate in the Section 8 program.
In this scenario, where the FMR is less than the market rent, landlords who choose to house voucher tenants will be renting their properties below the open-market rates. For instance, a landlord might receive $1570 per month for a unit that could otherwise fetch $1888 in the private rental market. This difference can impact the overall profitability of the investment property, especially when considering the maintenance costs, property taxes, and other expenses associated with rental management.
Cameron, NC has a rental population of 34.5% of its residents, indicating a substantial portion of the community relies on rental housing. The median home value in the area is $316,335, and the median income is $75,431, which provides insight into the economic conditions that necessitate affordable housing solutions such as the Section 8 program. Given these economic realities, the decision to rent to voucher tenants involves weighing the benefits of stable, government-backed rental income against the financial trade-offs of renting below market rates.
While participating in the Section 8 program may not maximize immediate rental income, it ensures a steady stream of payments from tenants who qualify for assistance due to their income levels. This stability can be particularly attractive to small-portfolio investors looking to diversify their rental investments or secure a reliable source of income. However, landlords should carefully consider the long-term implications of accepting a lower rent rate and ensure that their investment aligns with their financial goals and risk tolerance.
To summarize, the gap between the FMR and the market rent in Cameron, NC, highlights the financial considerations landlords face when deciding to participate in the Section 8 program. Accepting a tenant with a housing voucher means foregoing approximately $318 per month, or 20%, compared to renting at market rates. This decision should be made with an understanding of the local economic context and the potential for long-term rental stability.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.