Section 8 Fair Market Rent (FMR) for ZIP 28451 - 2027

Investment Score for ZIP 28451

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	$1,580
1 Bedroom	$1,640
2 Bedrooms	$1,790
3 Bedrooms	$2,340
4 Bedrooms	$2,740
5 Bedrooms	$3,178
6 Bedrooms	$3,559
7 Bedrooms	$3,844
8 Bedrooms	$4,036

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
2BR	$1,790	$262,685	0.68%	D
3BR	$2,340	$348,384	0.67%	D
4BR	$2,740	$496,471	0.55%	F
5BR	$3,178	$548,683	0.58%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 28451 (Leland, NC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 28451 is set by HUD for the year 2026. The FMRs for different unit types are as follows: - 0BR: $1410 - 1BR: $1480 - 2BR: $1620 (which represents 23.9% of the median household income) - 3BR: $2250 - 4BR: $2720 These figures represent the maximum amount that a Section 8 voucher holder can pay towards rent. However, the actual rents in the area must be compared against these FMRs to understand the dynamics better. For instance, the Zillow median price for a 2BR property in this ZIP code is $264,149, which translates into a monthly mortgage payment of approximately $1200-$1300 based on typical financing terms. This means that landlords who accept Section 8 vouchers would likely have to charge close to the FMR to cover their costs, leaving little room for profit margins. Given the occupancy rate of 92.7%, it suggests that there is a strong demand for housing in Leland, NC. However, the constraints for voucher holders are significant. They are limited to paying only up to the FMR, which is much lower than what the market might dictate. For example, a 2BR unit priced at $264,149 would have a monthly mortgage payment well above the $1620 FMR, making it challenging for voucher holders to find suitable housing unless landlords agree to accept the voucher at a lower rent. #### Affordability & Renter Profile The median household income in ZIP code 28451 is $81,481. With 18.0% of the population being renters, the market is relatively tight but not oversupplied. The affordability of housing is a critical issue for many residents, especially those relying on Section 8 vouchers. A 2BR unit priced at $1620 per month, which is 23.9% of the median income, is considered affordable under HUD guidelines. However, the reality is that the Zillow median price for a 2BR unit is significantly higher, indicating that the actual cost of renting such units could be much higher than the FMR. This tight market means that landlords have leverage over rental pricing, and they may not be inclined to accept Section 8 vouchers if they can get higher rents from other tenants. Additionally, the high median home value suggests that the area attracts middle to upper-middle-class homeowners, which could further drive up rental prices due to competition for available units. #### Investor Angle From an investor perspective, the ZIP code 28451 presents a mixed picture. The Price-to-FMR ratio of 13.6x indicates that the market value of homes is substantially higher than the FMR. This implies that properties purchased at market rates would need to generate significant rental income to justify the investment. However, given the constraints of Section 8 vouchers, landlords may struggle to achieve positive cash flow. To illustrate, let’s consider a 2BR unit. If purchased at the Zillow median price of $264,149, the monthly mortgage payment would be around $1200-$1300. Adding typical expenses like property taxes, insurance, maintenance, and management fees, the total monthly cost could easily exceed $1620. Therefore, accepting a Section 8 voucher at the FMR would result in negative cash flow, making it less attractive for investors looking to generate positive returns. The investment grade for this ZIP code would be considered low for Section 8-focused investments due to the high market values and the low FMR caps. Investors should carefully evaluate the potential for positive cash flow before committing to any purchases. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high market values and the low FMR caps, investors should focus on smaller units like 0BR and 1BR apartments where the FMR is closer to the actual rental costs. For example, a 0BR unit with an FMR of $1410 could potentially cover the mortgage payment of around $1200-$1300, leaving a small margin for other expenses. 2. **Consider Off-Market Deals**: To improve the chances of achieving positive cash flow, investors should look for off-market deals where they can purchase properties below the Zillow median price. This could involve negotiating directly with sellers or considering fixer-upper properties that can be renovated and rented out at slightly higher rates while still staying within the FMR limits. 3. **Evaluate Non-Section 8 Opportunities**: Given the tight market and the high median home value, investors might want to explore opportunities outside of Section 8 vouchers. They could target middle-income renters who are willing to pay higher rents, thereby ensuring positive cash flow and a better return on investment. #### Bottom Line For Section 8-focused investors, the ZIP code 28451 (Leland, NC) is not recommended for immediate purchase. The high market values and low FMR caps make it difficult to achieve positive cash flow. Instead, investors should hold off on buying until they can identify properties that offer better financial returns or consider alternative investment strategies that do not rely solely on Section 8 vouchers. In summary, the recommendation is to **skip** purchasing properties in this ZIP code for Section 8-focused investments and instead look for areas with a more favorable Price-to-FMR ratio or consider non-Section 8 opportunities within the same market.

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.