Location: Lenoir County, NC | Metro: Greene 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 | $920 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,350 | $177,171 | 0.76% | D |
U.S. Census Bureau data (2024)
The analysis for ZIP code 28538 centers on the disparity between the Fair Market Rent (FMR) set at $990 for fiscal year 2026 and the actual market rent reported at $901 based on Census ACS data. This gap is $89, representing approximately 10% of the market rent. Given that the FMR exceeds the market rent, properties in this area can attract voucher tenants who will pay up to the FMR, making it a lucrative yield play.
In ZIP 28538, 50.8% of residents are renters, with a median home value of $175,203 and a median income of $56,953. The higher FMR compared to the market rent means that landlords can potentially benefit from the guaranteed payment structure of the Section 8 program without setting their rents above the local market rate. This scenario provides a stable income stream for landlords while keeping the rent affordable for voucher holders.
The discrepancy between the FMR and the market rent also indicates that there might be opportunities for landlords to increase their rents slightly, closer to the FMR level, without deterring potential tenants. However, it is crucial to remain competitive within the local market to avoid vacancies.
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.