Location: Robeson County, NC | Metro: Hoke County, NC HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
U.S. Census Bureau data (2024)
A landlord considering ZIP 28386 for Section 8 investments must navigate several key factors to make an informed decision. Here’s a structured approach:
The Fair Market Rent (FMR) of $860 can cover the debt service costs on a property valued at $124,479, making it financially viable. This means that the rental income generated from a Section 8 voucher is sufficient to meet the mortgage obligations and other associated costs.
The FMR of $860 does not sufficiently cover the debt service on a $124,479 property. In this case, the investment would not be advisable unless the landlord can find ways to reduce costs or increase revenue from other sources.
The next question to consider is whether the market rent of $715 is above, at, or below the FMR:
The market rent of $715 is below the FMR of $860, indicating that Section 8 properties can potentially command higher rents compared to the general market. This could provide a margin of safety against potential decreases in FMR or increases in operating costs.
The market rent aligns closely with the FMR, suggesting that there is no significant premium over the general market. However, this still makes the area attractive for Section 8 investments due to the stability and predictability of rental income.
The market rent of $715 is below the FMR of $860, which means that landlords might benefit from slightly higher rents when renting to Section 8 tenants. This scenario is favorable as it provides a buffer against market fluctuations.
The final consideration is whether the 23.7% of renters and the unknown Days on Market (DOM) indicate sufficient demand:
The 23.7% of renters combined with a low DOM suggests strong demand for rental properties, including those eligible for Section 8 vouchers. This indicates that the investment has a good chance of being occupied and generating steady income.
The 23.7% of renters is a moderate figure, but without knowing the DOM, it's challenging to assess the demand accurately. However, given the alignment between market rent and FMR, the area remains promising for Section 8 investments.
The 23.7% of renters and a high DOM suggest lower demand for rental properties. This could mean that finding tenants willing to use their Section 8 vouchers might be harder, impacting the profitability of the investment.
In conclusion, the viability of investing in ZIP 28386 for Section 8 properties hinges on these three factors. The FMR of $860 and market rent of $715 provide a solid financial foundation, while the percentage of renters and DOM determine the demand. A positive outcome on all fronts would lead to a clear “yes” recommendation; otherwise, it depends on how the landlord balances risk and reward.
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.