Location: Carteret County, NC | Metro: Carteret 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 | $830 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,820 |
| 5 Bedrooms | $2,111 |
| 6 Bedrooms | $2,364 |
| 7 Bedrooms | $2,553 |
| 8 Bedrooms | $2,681 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,090 | $310,703 | 0.35% | F |
| 3BR | $1,390 | $433,450 | 0.32% | F |
| 4BR | $1,820 | $648,740 | 0.28% | F |
U.S. Census Bureau data (2024)
ZIP code 28516 in Beaufort, NC, is a residential area with a total population of 11,289. Approximately 28.0% of the residents are renters, indicating a modest rental market presence. The median household income in this area stands at $66,057, which is relatively high, suggesting a community with good financial stability. Median home values are also quite high at $420,945, reflecting a predominantly owner-occupied environment where property values are strong.
The economic landscape for rentals in 28516 is defined by the Federal Market Rent (FMR), which is set at $1,100 for the fiscal year 2026. This figure represents the benchmark for housing assistance payments under the Section 8 program. In contrast, the actual market rent, according to Census ACS data, is lower at $944 per month. This difference highlights an opportunity for landlords participating in the Section 8 program, as they can potentially receive higher rents than the current market rate.
Given these conditions, ZIP 28516 is suitable for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the area's stable income levels and the guaranteed payment structure of the Section 8 program provide a reliable stream of income without the need for active management. On the other hand, for hands-on investors looking to add value, the potential to leverage the higher FMR compared to market rent could be used to justify investments in property improvements, thereby increasing the overall value of the portfolio.
Investors should note that the success in this ZIP code will depend on the ability to manage properties effectively under the Section 8 guidelines and the willingness to engage with tenants who benefit from the housing assistance program. The combination of a slightly above-average median income and a moderate percentage of renters creates a balanced environment where both passive and active investment strategies can thrive.
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.