Location: Harnett County, NC | Metro: Harnett County, NC
| Unit Size | Monthly FMR |
|---|---|
| Studio | $990 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,560 |
| 4 Bedrooms | $1,960 |
| 5 Bedrooms | $2,274 |
| 6 Bedrooms | $2,547 |
| 7 Bedrooms | $2,751 |
| 8 Bedrooms | $2,889 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 28368 presents a clear picture when considering the annualized Fair Market Rent (FMR) and market rent against the median home value. For a two-bedroom unit, the FMR for fiscal year 2024 is set at $1130 per month. This translates to an annual rental income of $13,560. The median home value in the area is not available, which complicates a direct comparison with market rents.
However, the implied gross yield can still be calculated based on the FMR. Assuming a median home value that reflects typical housing costs in similar areas, let's use an estimated value of $200,000 for illustrative purposes. With this figure, the implied gross yield using the FMR would be approximately 6.78%. This calculation is derived from the annual rental income ($13,560) divided by the property value ($200,000).
Market rent data is also not available, making it challenging to provide a precise gross yield. However, if we assume market rent is higher than the FMR, say at $1400 per month for a two-bedroom unit, the annual rental income would increase to $16,800. Using the same $200,000 median home value estimate, the implied gross yield for market rent would be 8.4%, significantly higher than the FMR yield.
Given the 45.5% renter density in ZIP 28368, it is important to consider the demand for rental properties. A higher renter density suggests a robust market for rentals, potentially favoring market rents over FMRs. However, the Days on Market (DOM) data is not available, which could provide insights into how quickly properties are rented out at various price points.
In conclusion, while the exact median home value and market rent figures are not provided, the analysis based on FMR suggests a gross yield of 6.78%. If market rents are higher, the gross yield could reach 8.4%. The higher yield scenario is more realistic given the strong renter demand in the area, but investors should verify these assumptions with local real estate data to ensure accurate financial projections.
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.