Location: Fayetteville, NC | Metro: Fayetteville, NC HUD Metro FMR Area
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 | $1,180 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,340 |
| 3 Bedrooms | $1,760 |
| 4 Bedrooms | $2,160 |
| 5 Bedrooms | $2,506 |
| 6 Bedrooms | $2,807 |
| 7 Bedrooms | $3,032 |
| 8 Bedrooms | $3,184 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,760 | $268,198 | 0.66% | D |
| 4BR | $2,160 | $386,292 | 0.56% | F |
U.S. Census Bureau data (2024)
In ZIP code 28395, there are several risks to consider for landlords and small-portfolio investors looking to engage in Section 8 investments. Firstly, tenant turnover poses a significant challenge. With the market rent at $1,123 compared to the Fair Market Rent (FMR) of $1,130 for FY 2024, the potential for higher turnover rates exists due to the slight disparity in rental prices. This can lead to increased administrative costs and time spent on tenant screening and lease management.
Vacancy exposure is another critical risk factor. The Days on Market (DOM) figure is currently not available, which makes it difficult to predict how long a property might remain vacant between tenants. Vacancies can significantly impact cash flow, especially when considering the lower FMR rate.
The deferred maintenance exposure is also noteworthy. Given the typical home value of $298,206 and a median income of $84,375, there's a considerable gap that could result in deferred maintenance issues. Tenants may not have the financial means to cover additional costs for repairs or upgrades, placing the burden squarely on the landlord. This financial strain can be exacerbated if the landlord underestimates the maintenance requirements or fails to set aside adequate reserves.
However, these risks must be weighed against the high renter share in the area, which stands at 18.3%. High renter density typically translates into a robust demand for housing vouchers, indicating a stable pool of potential tenants. This can provide a buffer against the challenges posed by tenant turnover and vacancy exposure.
In conclusion, the overall risk for a first-time Section 8 landlord in ZIP 28395 is moderate. While there are significant risks related to tenant turnover, vacancy exposure, and deferred maintenance, the high renter share offers a degree of stability and demand that can mitigate some of these concerns.
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.