Section 8 Fair Market Rent (FMR) for ZIP 28540 - 2027

Investment Score for ZIP 28540

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,010
1 Bedroom	$1,020
2 Bedrooms	$1,250
3 Bedrooms	$1,730
4 Bedrooms	$2,090
5 Bedrooms	$2,424
6 Bedrooms	$2,715
7 Bedrooms	$2,932
8 Bedrooms	$3,079

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,250	$168,274	0.74%	D
3BR	$1,730	$254,428	0.68%	D
4BR	$2,090	$335,375	0.62%	D
5BR	$2,424	$428,054	0.57%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 28540 (Jacksonville, NC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 28540 indicate that a two-bedroom unit should rent for $1140 per month, which represents 20.8% of the median household income of $65,625. However, actual rents in the area are significantly higher. According to Zillow, the median price for a two-bedroom rental property is $166,884, which translates to a monthly rent of approximately $1,390 when considering a typical mortgage payment. This means the actual rent is about 12.2 times the FMR, indicating a substantial gap between what the government deems fair and what landlords charge. This disparity creates significant constraints for voucher holders. The $1140 FMR for a two-bedroom unit is likely insufficient to cover the actual rent costs in the area, making it difficult for tenants to find properties that accept their vouchers. Additionally, the high rent-to-income ratio suggests that even without a voucher, many residents would struggle to afford housing. #### Affordability & Renter Profile With 38.2% of the population renting, Jacksonville, NC has a notable share of renters. Given the median household income of $65,625, affordability is a concern. The occupancy rate of 90.1% indicates that the rental market is relatively tight, with most units occupied. This tightness could be attributed to the military presence in the area, as Onslow County is home to Camp Lejeune, a major U.S. Marine Corps base. Military personnel often require short-term housing solutions, contributing to a high demand for rentals. Despite the high occupancy rate, the significant gap between FMR and actual rents suggests that there might be some oversupply of units that are priced above the FMR threshold. These units are likely unaffordable for many low-income households, leading to a situation where some units remain vacant while others are underutilized due to affordability issues. #### Investor Angle From an investor perspective, the ZIP code 28540 offers mixed opportunities. At the FMR level, a two-bedroom unit would rent for $1140 per month. However, given the actual median rent of $1,390, the cash flow potential is higher if you can secure tenants willing to pay market rates. But for those focusing on Section 8 vouchers, the cash flow will be constrained by the lower FMR rates. To determine the investment grade, we need to consider the risk associated with relying on Section 8 vouchers. With the FMR being only a fraction of the actual market rent, landlords who depend solely on vouchers may face financial challenges. The high price-to-FMR ratio of 12.2x also suggests that the market is not aligned with government subsidies, making it less attractive for investors seeking stable returns through Section 8 vouchers. #### Specific Actionable Insights 1. **Focus on Units Below Market Rent**: Investors should target properties that can be rented below the market rate but still above the FMR. For instance, a two-bedroom unit could be priced at $1,200 per month, which is slightly below the median rent but still provides a better cash flow than the FMR. This approach allows landlords to attract both voucher holders and other renters who are looking for more affordable options. 2. **Diversify Tenant Base**: To mitigate the risks associated with relying solely on Section 8 vouchers, landlords should aim to diversify their tenant base. This can include a mix of voucher holders and non-voucher tenants who can pay market rates. By doing so, landlords can ensure a more stable income stream and reduce the financial strain of accepting only low-rent vouchers. 3. **Consider Short-Term Rentals**: Given the military presence in the area, short-term rentals could be a viable option. Military families often have temporary housing needs, and short-term rentals can provide a flexible solution. This strategy can help landlords generate higher revenue during periods of high demand, such as when new units arrive or existing ones depart. #### Bottom Line For Section 8-focused investors, the recommendation is to **Skip** this ZIP code. The high price-to-FMR ratio and the tight rental market make it challenging to find properties that are both affordable and profitable. While there is a significant number of renters, the gap between FMR and actual rents suggests that relying solely on Section 8 vouchers would result in suboptimal returns. Investors should look for areas where the FMR is closer to the actual market rent or where there is a larger percentage of low-income households that can benefit from government assistance.

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.