Location: Lenoir County, NC | Metro: Goldsboro, 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 | $850 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,820 |
| 5 Bedrooms | $2,111 |
| 6 Bedrooms | $2,364 |
| 7 Bedrooms | $2,553 |
| 8 Bedrooms | $2,681 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,360 | $213,233 | 0.64% | D |
U.S. Census Bureau data (2024)
A skeptical investor looking at ZIP code 28578 might raise several concerns regarding the feasibility of participating in the Section 8 program. Let's address these objections directly with the available data.
The first objection is whether the Fair Market Rent (FMR) of $920 for the fiscal year 2024 will be sufficient to cover the mortgage on a home valued at $142,317. This depends on the mortgage rate and term length. Assuming a typical 30-year fixed-rate mortgage at an average rate of around 5%, the monthly payment on a loan for $142,317 would be approximately $750. The FMR of $920 exceeds this amount, indicating that it can indeed cover the mortgage payment with a little left over for maintenance and other expenses. However, this calculation assumes no down payment was made, which is unlikely in most scenarios. A more realistic scenario would involve a down payment, reducing the mortgage amount and thus the monthly payment.
The second concern revolves around the renter demand, which stands at 26.9%. This percentage suggests that nearly one-quarter of the housing units in ZIP 28578 are occupied by renters. While this figure may seem low compared to urban areas, it is important to note that the demand for rental properties, particularly those eligible for Section 8, is often more stable and less volatile than the overall housing market. The presence of Section 8 tenants can provide a steady stream of income, which is attractive for landlords and small-portfolio investors. However, the data does not specify the exact number of rental units or the competition for Section 8 tenants, so it is challenging to make a definitive statement on the sufficiency of demand.
The third issue is whether voucher payments will keep pace with the market rents, currently estimated at $786. Historically, voucher amounts have lagged behind market rents, but they do adjust periodically based on local cost-of-living changes. In ZIP 28578, the FMR of $920 is higher than the market rent of $786, suggesting that voucher holders could potentially afford market rents if their vouchers were adjusted accordingly. Yet, the data does not provide specific information on how frequently voucher amounts are updated or the extent to which they might increase. Therefore, while the FMR indicates potential for covering market rents, the actual pace of voucher adjustments remains uncertain.
In summary, the data for ZIP 28578 shows that the FMR can likely cover mortgage payments on homes valued at $142,317, even though the renter demand percentage is relatively low. Additionally, while the FMR is higher than the market rent, the exact alignment of voucher payments with market conditions requires further investigation into the frequency and scale of voucher adjustments.
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.