Location: Lenoir County, NC | Metro: Jones 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 | $1,050 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,050 | $118,259 | 0.89% | C |
| 3BR | $1,320 | $199,433 | 0.66% | D |
| 4BR | $1,570 | $275,191 | 0.57% | F |
| 5BR | $1,821 | $333,317 | 0.55% | F |
U.S. Census Bureau data (2024)
Skeptical investors looking into Kinston, NC (ZIP 28504) often raise several concerns regarding the viability of investing in properties that participate in the Section 8 program. Here are some common objections and how the data addresses them:
Objection 1: Will the Fair Market Rent (FMR) of $1030 for the zip code in fiscal year 2024 cover the mortgage on a $191,703 home?
The FMR of $1030 does not directly correlate with the mortgage payment on a $191,703 home. To determine if it covers the mortgage, we must consider the interest rate and the term of the loan. Assuming a 30-year fixed-rate mortgage at an average interest rate of 5%, the monthly principal and interest payment would be approximately $1040. This means that the FMR would barely cover the mortgage payment, leaving little room for other expenses such as property taxes, insurance, and maintenance. However, it's important to note that property values can vary significantly within a zip code, and homes priced below $191,703 would have lower mortgage payments, making the FMR more adequate.
Objection 2: Is there enough renter demand at 36.3%?
The renter occupancy rate of 36.3% indicates that slightly less than one-third of the housing units in Kinston are occupied by renters. This percentage might seem low compared to national averages, which hover around 35-40%. However, the demand for rental properties is also influenced by factors such as job availability, population growth, and local economic conditions. While the data provided does not give a complete picture of these factors, it suggests that there is a moderate level of demand for rentals in the area. For Section 8 investors, the key consideration is whether there are enough eligible families seeking housing assistance, which would require additional research beyond the given data.
Objection 3: Will vouchers keep pace with market rents of $1500?
The FMR of $1030 for ZIP 28504 is notably lower than the market rent of $1500. This gap suggests that voucher holders might struggle to find suitable housing, as landlords would need to accept a rent significantly below the market rate. The Housing Choice Voucher Program adjusts FMRs annually based on changes in the local housing market, but it is not guaranteed to keep pace with rapid increases in market rents. Therefore, while the program aims to provide affordable housing options, the data shows a discrepancy between the FMR and actual market rents, indicating potential challenges in finding tenants who can afford market rates solely through vouchers.
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.