Location: Duplin County, NC | Metro: Duplin County, NC
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 | $900 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,180 | $150,523 | 0.78% | D |
| 3BR | $1,410 | $212,536 | 0.66% | D |
| 4BR | $1,630 | $306,544 | 0.53% | F |
U.S. Census Bureau data (2024)
The Section 8 program's impact on real estate investment in ZIP code 28349, centered around Kenansville, NC, reveals a critical gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $1,060. However, the market rent in Kenansville is currently unreported, suggesting that it could be either higher or lower than the FMR.
If the market rent were to be higher than the FMR, landlords would face a significant challenge. For instance, if the market rent were $1,200, the gap would amount to $140, or approximately 13.2% of the FMR. This scenario indicates that landlords accepting Section 8 vouchers would receive rents below the open-market rates, leading to lower yields on their investments. The disparity between the FMR and market rent reflects the financial burden of housing voucher tenants, who might not cover the full cost of maintaining properties at competitive rental values.
On the other hand, if the market rent were lower than the FMR, say $900, then the gap would be $160, or about 15.1% of the FMR. In this case, voucher tenants would effectively become a yield play for landlords. They would receive a guaranteed income closer to the FMR, which is higher than what they might get from non-voucher tenants paying market rates. This makes Section 8 properties particularly attractive in areas where market rents are depressed.
Kenansville's context further illuminates this analysis. With 25.9% of residents renting and a median home value of $206,308, the town has a mix of homeowners and renters. The median income of $54,139 suggests that many households rely on assistance programs like Section 8 to afford housing. Landlords must consider these factors when evaluating the potential returns and risks associated with Section 8 rentals.
In summary, the gap between FMR and market rent in ZIP 28349 is pivotal for landlords and small-portfolio investors. Whether this gap leads to a yield play or represents a financial cost depends on the relationship between the two figures. Given the economic conditions in Kenansville, understanding this dynamic can help investors make informed decisions about participating 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.