Location: Robeson County, NC | Metro: Robeson County, NC
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 28359 reveals a challenging investment scenario due to limited data availability. The Family Monthly Rent (FMR) for a 2-bedroom unit is set at $930 annually for fiscal year 2026, based on metropolitan area standards. However, the lack of specific market rent data complicates the direct comparison with median home values, which are also not available.
To derive the implied gross yield, we can use the FMR as a proxy for rental income. Assuming a 2BR unit's annualized FMR of $930, the implied gross yield would be calculated by dividing the annual rental income by the property value. Given the median home value is not specified, let's consider a hypothetical median home value of $200,000, a common figure for many areas. This would result in an implied gross yield of approximately 0.47% ($930 / $200,000).
In contrast, if we were to use typical market rent data, the gross yield would likely be higher. For instance, if the market rent for a similar 2BR unit were $1,200 per month, the annualized market rent would be $14,400. Using the same hypothetical median home value of $200,000, the implied gross yield would be around 7.2% ($14,400 / $200,000).
The significant difference between these two yields highlights the disparity between Section 8 rental income and potential market rents. The lower gross yield under Section 8 reflects the government-subsidized nature of these leases, which often offer below-market rates to ensure affordability for low-income families.
Given the 100.0% renter density in ZIP 28359, it is clear that demand for rental properties is high. However, the N/A-day Days on Market (DOM) suggests that there is no reliable data on how quickly properties are rented out, which could indicate either a very competitive rental market or a lack of recent sales data.
In conclusion, while the Section 8 program provides stability and consistent occupancy, the gross yield is considerably lower compared to potential market rents. Investors should carefully weigh the benefits of guaranteed tenants against the reduced income when considering properties in ZIP 28359. The choice between Section 8 participation and seeking market rents will depend on individual investment goals and risk tolerance.
Data Sources: FMR data from HUD (2027). 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.