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 | $930 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $2,040 |
| 5 Bedrooms | $2,366 |
| 6 Bedrooms | $2,650 |
| 7 Bedrooms | $2,862 |
| 8 Bedrooms | $3,005 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,220 | $326,672 | 0.37% | F |
| 3BR | $1,540 | $446,773 | 0.34% | F |
| 4BR | $2,040 | $724,092 | 0.28% | F |
U.S. Census Bureau data (2024)
If a landlord is considering purchasing a property in ZIP code 28531, which encompasses Harkers Island, NC, for Section 8 investment, they must evaluate several factors based on the specific data points provided.
Does the Fair Market Rent (FMR) of $1,190 cover the debt service on a $408,303 property?
Yes: The FMR of $1,190 is the amount that HUD has determined as sufficient to cover the average cost of decent housing in the area. To determine if this clears the debt service, we need to calculate the monthly mortgage payment for a property priced at $408,303. Assuming a typical 30-year fixed-rate mortgage at an interest rate of 4%, the monthly principal and interest payment would be approximately $1,970. This means the FMR does not cover the debt service, making the answer to this question a clear No.
No: As mentioned, the FMR of $1,190 is insufficient to cover the debt service on a $408,303 property, which requires around $1,970 per month. Therefore, the landlord would need to find other sources of income or subsidies to make up the difference.
Is the market rent of $1,125 above, at, or below the FMR?
Below: The market rent of $1,125 is below the FMR of $1,190. This indicates that the property may be undervalued compared to what HUD deems fair for the area, but it still does not clear the debt service.
It Depends: While the market rent is below the FMR, it's important to note that the FMR is designed to ensure affordability for low-income households. Landlords should consider whether the lower market rent aligns with their investment goals and whether they can leverage the FMR to negotiate higher rents.
Are the 10.6% of renters combined with the N/A-day days on market (DOM) enough demand?
No: With only 10.6% of the population being renters, the demand for rental properties is relatively low. Additionally, the lack of data on days on market suggests either limited listings or inconsistent market activity, both of which could indicate a slow-moving market.
It Depends: Although the percentage of renters is low, the demand for affordable housing may still exist. Landlords should investigate further into the local housing needs and the availability of Section 8 vouchers in the area. If there is a high demand for subsidized housing, the low overall rental rate might not be a significant deterrent.
In conclusion, while the FMR of $1,190 does not clear the debt service on a $408,303 property, the decision to invest in ZIP code 28531 hinges on the landlord's willingness to accept a lower return on investment and their assessment of the local demand for affordable housing. The market rent being below the FMR and the low percentage of renters suggest caution, but these factors alone do not definitively preclude investment.
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.