Location: Pamlico County, NC | Metro: Pamlico 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 | $1,010 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,910 |
| 5 Bedrooms | $2,216 |
| 6 Bedrooms | $2,482 |
| 7 Bedrooms | $2,681 |
| 8 Bedrooms | $2,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,260 | $245,311 | 0.51% | F |
| 3BR | $1,520 | $433,801 | 0.35% | F |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in ZIP code 28556 in Oriental, NC, under the Section 8 program are significant. First, the issue of tenant turnover is a critical concern. With the Fair Market Rent (FMR) for the fiscal year 2024 set at $1190, landlords should be aware that market rents in the area are currently unknown (N/A), which can lead to uncertainty regarding the attractiveness of rental properties to tenants. High turnover rates can strain resources and reduce profitability.
Vacancy exposure is another risk factor. The Days on Market (DOM) for properties in this ZIP code is also unknown (N/A), indicating that it might be challenging to gauge how quickly a property can be rented out. This unpredictability can result in extended periods without rental income, impacting cash flow negatively.
Deferred maintenance poses a substantial threat due to the typical home value of $313,115. If the median income in the area is unknown (N/A), it suggests that many residents may struggle to afford necessary repairs, leading to higher maintenance costs for landlords. This financial burden can significantly affect the bottom line and the overall investment performance.
Despite these challenges, there are mitigating factors that make ZIP 28556 an attractive option for Section 8 investments. The renter share in this area stands at 22.3%, which is notably high. A high concentration of renters often translates into robust demand for housing vouchers, providing a stable pool of potential tenants who are guaranteed to pay their rent through the government subsidy program.
In conclusion, the risks associated with Section 8 investments in ZIP 28556 include uncertain market rents leading to high tenant turnover, unknown vacancy exposure due to unclear market conditions, and potentially high deferred maintenance costs. However, the high renter share offers a counterbalance, ensuring a steady stream of qualified tenants. Based on these considerations, the overall risk for a first-time Section 8 landlord in this area is moderate.
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.