Location: Jones County, NC | Metro: Jacksonville, 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 | $990 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,690 |
| 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 | $175,292 | 0.7% | D |
| 3BR | $1,690 | $274,584 | 0.62% | D |
| 4BR | $2,040 | $327,611 | 0.62% | D |
| 5BR | $2,366 | $383,656 | 0.62% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 28574, Richlands, NC, within Onslow County, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment is set at $1340 per month for the fiscal year 2024. This figure is specifically tailored for this ZIP code, meaning it reflects the rental rates deemed fair and reasonable in this particular area.
In comparison, the local market rent for a similar two-bedroom unit is higher at $1,565, as indicated by ZORI (Zillow Observed Rent Index). Landlords participating in the Section 8 program should understand that the actual amount they receive is influenced by both the SAFMR and the tenant's portion of the rent, along with any utility allowances.
The voucher system works as follows: the government pays the difference between the tenant’s contribution and the SAFMR. The tenant’s portion is generally 30% of their adjusted income, which must fall below certain thresholds to qualify for assistance. For example, if a tenant has an adjusted income of $1,000, their monthly contribution would be $300. This leaves a balance of $1040 to be covered by the voucher, assuming the SAFMR of $1340 is reached.
Utility allowances can also play a role in the reimbursement calculation. These allowances vary based on the region and the size of the unit. In ZIP 28574, the utility allowance is factored into the overall payment but does not exceed the SAFMR. If a landlord charges $1340 for rent and the tenant contributes $300, the landlord receives the full $1340, with the government covering the remaining $1040.
However, when the market rent exceeds the SAFMR, landlords must decide whether to accept the lower reimbursement rate or seek non-voucher tenants willing to pay the higher market rate. For instance, at the local market rent of $1,565, the landlord would only receive $1340 from the voucher program, creating a shortfall of $225 per month. This gap is the landlord’s responsibility unless they negotiate a higher contribution from the tenant, which is not guaranteed.
To summarize, landlords in ZIP 28574 who choose to participate in the Section 8 program will receive a reimbursement up to $1340 for a two-bedroom apartment, regardless of the market rent. Given the local market rent of $1,565, there is a typical reimbursement gap of $225 per month. This gap underscores the need for landlords to carefully consider the financial implications before enrolling units in the Section 8 program.
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.