Location: Lenoir County, NC | Metro: Craven 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 | $810 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,080 | $70,706 | 1.53% | A+ |
| 3BR | $1,440 | $122,418 | 1.18% | B |
| 4BR | $1,800 | $202,360 | 0.89% | C |
| 5BR | $2,088 | $213,539 | 0.98% | C |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 28501, which covers Kinston, NC, in Lenoir County, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for FY 2024 is $990. This is the maximum amount that the Housing Choice Voucher program will pay for a two-bedroom rental unit in this area. However, it's important to note that the local market rent for a similar unit is significantly lower at $799, according to Census ACS data.
A landlord participating in the Section 8 program receives a payment from the government for the difference between the market rent and the tenant's portion of the rent. The tenant is typically responsible for paying 30% of their adjusted income towards rent. For a two-bedroom unit priced at $799, if we assume a tenant's income is such that their portion is $240 (30% of $800), then the landlord would receive:
In addition to the base rent, landlords also receive utility allowances, which can vary depending on the specifics of the lease and the tenant's needs. These allowances are intended to cover costs such as electricity, gas, water, and sewer. For ZIP 28501, the utility allowance is not specified, but it typically ranges from $150 to $300 per month, depending on the household size and type of utilities included.
To illustrate, if the utility allowance is $200, the total monthly reimbursement to the landlord would be $559 (government's portion) + $200 (utility allowance) = $759. This means the landlord would collect a total of $759 from the government plus the $240 from the tenant, totaling $999 per month.
However, there is a reimbursement gap here. Given the market rent of $799, the landlord would be overpaid by $200 ($999 - $799) when factoring in the tenant's portion and the utility allowance. This surplus can be seen as an advantage for landlords who participate in the program, as it provides a buffer against potential underpayment due to the tenant's income being lower than expected.
In summary, the Section 8 voucher system in ZIP 28501 compensates landlords based on the SAFMR, which is higher than the local market rent. This results in a surplus for landlords, making participation in the program financially beneficial despite the administrative requirements.
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.