Location: Sampson County, 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 | $990 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,510 |
| 4 Bedrooms | $1,870 |
| 5 Bedrooms | $2,169 |
| 6 Bedrooms | $2,429 |
| 7 Bedrooms | $2,623 |
| 8 Bedrooms | $2,754 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,510 | $233,449 | 0.65% | D |
| 4BR | $1,870 | $330,833 | 0.57% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 28344 reveals interesting insights into the potential returns for landlords and small-portfolio investors. To begin, let's consider the Fair Market Rent (FMR) for a two-bedroom apartment, which stands at $970 per month according to FY 2024 data. When annualized, this figure amounts to $11,640 annually. Comparatively, the market rent for a similar property is recorded at $788 monthly based on Census ACS data, equating to an annual rental income of $9,456.
To derive the gross yield, we'll use the median home value of $236,155 as our investment basis. For the Section 8 scenario, the gross yield would be approximately 4.93%. This is calculated by dividing the annualized FMR ($11,640) by the median home value ($236,155). In contrast, the gross yield for the market rent scenario drops to about 3.99%, obtained by dividing the annualized market rent ($9,456) by the same median home value.
The higher gross yield under the Section 8 scenario suggests a potentially more attractive investment opportunity for those willing to participate in the program. However, it's crucial to consider the broader market context. With a renter density of 21.0%, the demand for rental properties, including those under Section 8, is relatively low compared to areas with higher renter populations. Additionally, the lack of specific Days on Market (DOM) data for the area implies that there might be challenges in securing tenants quickly, which can affect cash flow and overall investment performance.
In conclusion, while the Section 8 program offers a higher gross yield at 4.93% compared to the market rent yield of 3.99%, the actual feasibility of these yields must be evaluated against the local rental market dynamics. Given the lower renter density, landlords should carefully assess the potential for occupancy delays and the impact on their investment strategy before deciding to participate in the Section 8 program.
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.