Section 8 Fair Market Rent (FMR) for ZIP 28385 - 2027

Investment Score for ZIP 28385

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A landlord considering investing in ZIP code 28385 (Salemburg, NC) for Section 8 properties must follow a structured decision-making process based on the following criteria:

1. Does the Fair Market Rent (FMR) of $990 cover the debt service on a property valued at $145,981?

• Yes: If the landlord can secure a mortgage rate that allows the FMR to cover the debt service, then the investment is viable. For instance, with a typical mortgage rate and terms, the monthly payment on a $145,981 property would need to be less than or equal to $990.
• No: If the FMR does not cover the debt service, then the landlord should avoid purchasing in this area unless they can finance the property without a mortgage or find ways to reduce costs.

2. How does the market rent of $629 compare to the FMR?

• Above FMR: If the market rent were above the FMR, it would indicate that landlords could potentially earn higher returns outside of the Section 8 program. However, since the market rent is below the FMR, landlords participating in Section 8 can expect to receive higher rents than the market average.
• At FMR: Not applicable in this case as the market rent is below the FMR.
• Below FMR: The market rent being below the FMR suggests that landlords will benefit financially from participating in the Section 8 program. They will likely receive more than what the market offers, making it a favorable option.

3. Is there sufficient demand with 24.5% renters and an unspecified number of days on the market (DOM)?

• Yes: With 24.5% of residents being renters, there is a reasonable base of potential tenants. Additionally, the lack of specified DOM indicates that units are being filled relatively quickly, suggesting strong demand.
• No: This scenario is unlikely given the data. However, if there were a high DOM indicating slow unit turnover, it might signal lower demand.
• It Depends: The percentage of renters is adequate, but the unspecified DOM makes it challenging to definitively assess the speed at which units are rented. Landlords should research further into the local rental market trends and vacancy rates to make a more informed decision.

In conclusion, if the landlord can ensure that the FMR covers the debt service, they should consider purchasing in ZIP 28385. The market rent being below the FMR and the presence of 24.5% renters indicate a positive financial outlook for Section 8 participation. However, the landlord must also investigate the rental market's dynamics beyond the provided statistics to fully understand the demand landscape.

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.