Location: Scotland County, NC | Metro: Richmond 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 | $770 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $53,921 | 1.87% | A+ |
| 3BR | $1,330 | $132,749 | 1% | B |
U.S. Census Bureau data (2024)
A landlord considering investing in ZIP code 28351, Laurel Hill, NC, for Section 8 properties must evaluate several factors to determine if it's a sound investment. The decision tree below outlines the key considerations based on the provided data.
1) Does the Fair Market Rent (FMR) of $930 cover the debt service on a property valued at $105,883?
Yes: The FMR of $930 per month is sufficient to cover the debt service on a property valued at $105,883. This assumes that the debt service is within the range of what can be reasonably expected from a property of this value, typically around $600-$700 per month depending on financing terms and interest rates.
No: If the debt service exceeds $930 per month, then the FMR does not clear the debt service, making the investment unfeasible under Section 8 guidelines without additional income sources or subsidies.
It Depends: If the debt service is close to $930 per month but not quite there, the landlord might still consider the investment if they can find ways to reduce costs or increase rental income through other means such as utility allowances or management fees.
2) Is the market rent of $819 (Census ACS) above, at, or below the FMR?
Above: If the market rent were above $930, it would indicate that the landlord could potentially earn more than the FMR, which could offset any shortfalls in covering the debt service. However, in this case, the market rent is below the FMR at $819.
At: Not applicable here since the market rent is below the FMR.
Below: The market rent of $819 is below the FMR of $930, suggesting that the property could attract tenants willing to pay up to the FMR, thus providing a margin over the market rate.
3) Are 27.0% renters combined with an unspecified number of days on the market (DOM) enough demand?
Yes: With 27.0% of residents being renters, there is a significant portion of the population who might be interested in renting properties. If the DOM is low, it indicates strong demand for rental properties in the area.
No: If the DOM is high, it suggests that there is not enough demand to justify the investment. High DOM implies difficulty in finding tenants quickly, which could affect cash flow and the overall viability of the property as a Section 8 investment.
It Depends: If the DOM is moderate, the landlord will need to assess whether the rental vacancy rate is acceptable and whether the neighborhood's characteristics support long-term occupancy. Additionally, the landlord should consider the competition in the rental market and the desirability of the property relative to others in the area.
To conclude, the investment in ZIP code 28351 for Section 8 properties is feasible if the FMR covers the debt service, the market rent is below the FMR, and the rental demand is strong enough to ensure quick occupancy. Landlords must carefully weigh these factors against their own financial situation and investment goals.
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.