Location: Avery County, NC | Metro: Hickory-Lenoir-Morganton, 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 | $870 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,700 |
| 5 Bedrooms | $1,972 |
| 6 Bedrooms | $2,209 |
| 7 Bedrooms | $2,386 |
| 8 Bedrooms | $2,505 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,100 | $139,785 | 0.79% | D |
| 3BR | $1,390 | $294,412 | 0.47% | F |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 investment in ZIP code 28611 in Collettsville, NC, include significant tenant turnover. The Fair Market Rent (FMR) for FY 2024 is set at $1010, but without specific market rent data, it's challenging to predict how competitive this figure will be. High tenant turnover can lead to frequent vacancies, which in turn increases exposure to vacancy periods. Without the days on market (DOM) data, it's also difficult to gauge how long properties might remain vacant between tenancies.
Deferred maintenance is another critical risk factor. With a typical home value of $170,882, maintaining property standards can be costly. However, the absence of median income data makes it hard to assess the financial capacity of tenants to cover these costs through their rent contributions. This uncertainty can pose a challenge in ensuring that the property remains well-maintained and in compliance with housing standards.
Despite these risks, the low renter share of 0.0% in the area suggests a unique situation where there is minimal competition for rental properties. Typically, a high renter density would mean increased demand for Section 8 vouchers, but in this case, the lack of renters could indicate a lower number of voucher holders seeking housing. This scenario reduces the likelihood of having to rely solely on Section 8 tenants to fill vacancies, potentially lowering the risk associated with deferred maintenance and vacancy periods.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.