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 | $1,210 |
| 1 Bedroom | $1,600 |
| 2 Bedrooms | $1,740 |
| 3 Bedrooms | $2,280 |
| 4 Bedrooms | $2,290 |
| 5 Bedrooms | $2,656 |
| 6 Bedrooms | $2,975 |
| 7 Bedrooms | $3,213 |
| 8 Bedrooms | $3,374 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,740 | $263,559 | 0.66% | D |
| 3BR | $2,280 | $360,056 | 0.63% | D |
| 4BR | $2,290 | $727,311 | 0.31% | F |
| 5BR | $2,656 | $1,505,018 | 0.18% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 28405, located in Wilmington, NC, reveals a competitive but manageable rental environment. The HUD Fair Market Rent (FMR) for the area, set at $1,560 for fiscal year 2024, is slightly below the market rent, which stands at $1,656 according to ZORI (Zillow's Observed Rental Index).
Voucher tenants in this region will cashflow at the FMR rate, but only marginally. Landlords should expect a small buffer between the HUD FMR and the actual market rent, indicating that investors might need to focus on maintaining costs and optimizing property management to ensure profitability.
The median home value in ZIP 28405 is $371,040. Using this figure, we can calculate a rent-to-price ratio, which is approximately 0.47%. This ratio suggests that the rental income generated from properties in this area is relatively low compared to their purchase price, implying that investors looking to maximize returns through rental income alone may find limited opportunities.
The real estate market in Wilmington, NC, shows a median Days on Market (DOM) of 36 days and a price-cut share of just 0.2%. These metrics indicate a strong seller's market where homes are selling quickly without significant price reductions. However, these dynamics do not significantly impact the decision to rent versus buy, as they pertain more to the sale of homes rather than the rental market itself.
In conclusion, the strongest investor angle in ZIP 28405 is likely stability. Given the close alignment between the HUD FMR and market rents, along with the quick turnover of properties, investors can expect consistent cash flow and a stable market environment, making it an attractive location for those seeking long-term, reliable investment opportunities.
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.