Location: Columbus County, NC | Metro: Columbus County, NC
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 | $860 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,330 |
| 5 Bedrooms | $1,543 |
| 6 Bedrooms | $1,728 |
| 7 Bedrooms | $1,866 |
| 8 Bedrooms | $1,959 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,210 | $234,087 | 0.52% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 28463 reveals a complex picture that investors should consider carefully. The Fair Market Rent (FMR) for a two-bedroom apartment in this area for fiscal year 2026 is set at $930 per month. When annualized, this equates to a rental income of $11,160 per year. Given the median home value in ZIP 28463 stands at $178,254, the implied gross yield for a property rented under Section 8 guidelines would be approximately 6.3%. This calculation is derived by dividing the annual rental income ($11,160) by the median home value ($178,254).
In contrast, the market rent for a similar property based on Census ACS data is $805 per month. Annualizing this figure gives an annual rental income of $9,660. Using the same median home value, this translates into an implied gross yield of about 5.4%, calculated by dividing the annual market rent ($9,660) by the median home value ($178,254).
The difference between these yields highlights the financial benefits of participating in the Section 8 program compared to the prevailing market rates. However, the decision on which yield is more realistic depends heavily on the local real estate market dynamics and the specific conditions of the property.
The renter density in ZIP 28463 is 29.9%, indicating a significant portion of residents are homeowners rather than renters. This could suggest that market rents might be more reflective of the overall demand for rentals in the area. However, the Section 8 program provides a stable source of income with minimal vacancy risk, which can be particularly attractive in a market with high homeowner density.
The Days on Market (DOM) data being N/A implies there might be limited recent sales data available, which could affect the reliability of the median home value figure. Despite this, the higher gross yield under Section 8 guidelines makes it a compelling option for investors seeking steady returns, even if the absolute number of renters is lower. For landlords and small-portfolio investors, the choice between market rent and Section 8 rent should be made considering the stability of income versus potential for higher yields through market fluctuations.
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.