Location: Lenoir County, NC | Metro: Greenville, NC MSA
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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,080 | $110,194 | 0.98% | C |
| 3BR | $1,440 | $198,560 | 0.73% | D |
| 4BR | $1,800 | $257,903 | 0.7% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 28530, Grifton, NC, reveals two distinct rental income scenarios based on the Fair Market Rent (FMR) and market rent data. Using the annualized 2BR FMR of $990 for fiscal year 2024, the potential rental income would be $11,880 per year. Given the median home value of $185,695, this translates into an implied gross yield of approximately 6.4%. This calculation is derived by dividing the annual rental income by the median home value.
In contrast, using the market rent figure of $824 per month from the Census ACS data, the annual rental income would be $9,888 per year. This scenario yields an implied gross yield of about 5.3% when calculated similarly. The difference between these two yields is significant, reflecting the higher guaranteed income under the Section 8 program compared to the general market rent.
To determine which scenario is more realistic, consider the local rental market conditions. With a renter density of 36.2%, it's evident that there is a substantial portion of the population seeking rental housing. However, the lack of data on days on market (DOM) makes it difficult to assess how quickly units might be filled under either scenario. Despite this, the higher FMR-based gross yield of 6.4% is more likely to attract investors due to the stability and predictability of Section 8 payments. Landlords can rely on consistent rental income, even if the occupancy rate is slightly lower than the market average.
The market rent-based gross yield of 5.3% reflects the current rental environment but may not provide the same level of security as the FMR-based yield. Investors should weigh the benefits of guaranteed income against the possibility of achieving higher yields through market rents, considering the local demand and competition. The 6.4% gross yield under the FMR scenario represents a safer, albeit potentially lower, return compared to the variable market conditions.
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.