Location: Wilmington, NC | Metro: Wilmington, 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 | $1,550 |
| 2 Bedrooms | $1,690 |
| 3 Bedrooms | $2,220 |
| 4 Bedrooms | $2,220 |
| 5 Bedrooms | $2,575 |
| 6 Bedrooms | $2,884 |
| 7 Bedrooms | $3,115 |
| 8 Bedrooms | $3,271 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,550 | $155,507 | 1% | C |
| 2BR | $1,690 | $269,397 | 0.63% | D |
| 3BR | $2,220 | $404,907 | 0.55% | F |
| 4BR | $2,220 | $726,623 | 0.31% | F |
| 5BR | $2,575 | $1,043,444 | 0.25% | F |
U.S. Census Bureau data (2024)
The Section 8 market in ZIP code 28403, located in Wilmington, NC, presents a unique opportunity for both landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the area, as of fiscal year 2024, is set at $1410. This figure represents the maximum amount that a voucher tenant can pay towards their rent. In comparison, the market rent, measured by Zillow's ZORI index, stands at $1,666, indicating a significant gap between the two rates.
Voucher tenants in this region will only cash flow marginally at the HUD FMR rate. To achieve positive cash flow, landlords must ensure their rental properties are priced close to or slightly below the FMR rate. However, with the market rent being higher, there is a potential for landlords to adjust their pricing strategies to attract non-voucher tenants who might be willing to pay closer to the market rate.
The median home value in ZIP 28403 is $392,176. Using this figure, we can derive the rent-to-price ratio by comparing the HUD FMR rate to the median home value. This ratio helps investors understand the relative cost of renting versus buying in the area. A simple calculation reveals that the annual rent based on the FMR would be approximately $16,920, while the median home value suggests an investment of nearly $400,000. This indicates a relatively low rent-to-price ratio, making it more financially advantageous for potential buyers to purchase rather than rent.
The dynamics of the rental market also show a median Days on Market (DOM) of 24 days, suggesting a fairly quick turnover rate for rentals. Additionally, the price-cut share of 0.2% indicates that property values are generally stable and do not require frequent adjustments to remain competitive. These factors contribute to a stable rental market, which is beneficial for long-term investors looking for consistent returns.
The strongest angle for Section 8 investors in ZIP 28403 is stability. With a low price-cut share and a quick DOM, investors can expect steady cash flows and minimal fluctuations in property values, making it an attractive option for those seeking a reliable investment.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.