Section 8 Fair Market Rent (FMR) for ZIP 28412 - 2027

Investment Score for ZIP 28412

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

Unit Size	Monthly FMR
Studio	$1,240
1 Bedroom	$1,640
2 Bedrooms	$1,780
3 Bedrooms	$2,340
4 Bedrooms	$2,340
5 Bedrooms	$2,714
6 Bedrooms	$3,040
7 Bedrooms	$3,283
8 Bedrooms	$3,447

Investment Analysis by Bedroom Size

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

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,640	$179,912	0.91%	C
2BR	$1,780	$246,947	0.72%	D
3BR	$2,340	$383,728	0.61%	D
4BR	$2,340	$543,583	0.43%	F
5BR	$2,714	$645,360	0.42%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 28412 (Wilmington, NC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 28412, as set by HUD for 2026, is $1740 for a two-bedroom unit. This amount represents 29.1% of the median household income of $71,636 in the area. However, the actual median rent for a two-bedroom unit on Zillow is $249,296, which is significantly higher than the FMR. The price-to-FMR ratio is 11.9x, indicating that the actual market rent far exceeds what is considered fair market rent. For voucher holders, this means they will likely face significant challenges in finding rental properties that accept their vouchers and do not exceed the FMR cap. #### Affordability & Renter Profile In ZIP code 28412, 41.6% of households are renters, suggesting a substantial demand for rental housing. With a median household income of $71,636, affordability is a concern for many residents. Given that 29.1% of the median income goes towards the FMR for a two-bedroom unit, it implies that a significant portion of the population may struggle to afford even the FMR rates, let alone the actual market rates. The occupancy rate of 94.1% indicates a tight rental market, where most available units are already occupied. This high occupancy rate suggests that there is little room for new rentals to enter the market without facing stiff competition from existing properties. #### Investor Angle From an investor’s perspective, the ZIP code 28412 presents a challenging environment for cash flow if relying solely on FMR rates. The FMR for a two-bedroom unit is $1740, while the actual median rent is $249,296. This disparity means that properties rented at FMR rates would likely generate less revenue compared to market rates. The investment grade for this ZIP code would be lower due to the difficulty in attracting tenants who can pay the FMR rates, especially when the actual market rates are so much higher. Investors should consider the potential for underutilization of their properties if they only cater to Section 8 voucher holders. #### Specific Actionable Insights 1. **Targeting Specific Units**: Investors should focus on acquiring one-bedroom and three-bedroom units, as these have FMRs of $1590 and $2280 respectively. These units are closer to the actual market rates and may attract more tenants who can afford the rents. For instance, a three-bedroom unit at $2280 might be more attractive than a two-bedroom unit at $1740, given the actual market conditions. 2. **Location-Specific Strategies**: Within ZIP code 28412, certain neighborhoods may have more affordable housing options. Investors could target areas with lower average rents to increase the likelihood of attracting voucher holders. Additionally, offering amenities such as parking, laundry facilities, and security features can make a property more appealing to tenants. 3. **Rent Stabilization Policies**: Given the high price-to-FMR ratio, investors should monitor local rent stabilization policies and regulations. If the city or county implements measures to control rent increases, it could affect the ability to charge market rates and impact cash flow negatively. #### Bottom Line Based on the data provided, the recommendation for Section 8-focused investors in ZIP code 28412 is to **Skip** this market. The significant gap between the FMR and actual market rents makes it difficult to find tenants who can afford the FMR rates, leading to potential underutilization of properties. Additionally, the tight rental market and high occupancy rate suggest limited opportunities for new rentals to enter the market profitably. Investors looking to maximize returns and ensure steady cash flow should consider other ZIP codes with more favorable price-to-FMR ratios and a larger percentage of voucher-accepting landlords.

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.