Location: Cleveland 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 | $950 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,680 |
| 5 Bedrooms | $1,949 |
| 6 Bedrooms | $2,183 |
| 7 Bedrooms | $2,358 |
| 8 Bedrooms | $2,476 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,130 | $178,592 | 0.63% | D |
| 3BR | $1,380 | $276,849 | 0.5% | F |
U.S. Census Bureau data (2024)
The ZIP code 28612 in North Carolina presents a dynamic rental market that suggests strong demand relative to supply. The Fair Market Rent (FMR) for the area is set at $950 for the fiscal year 2024, while the actual market rent, as reported by the Census Bureau's American Community Survey, stands at $872. This discrepancy indicates that the rental market is robust, with landlords potentially having the leverage to increase rents towards the FMR level.
A further sign of demand outpacing supply is the low price-cut share of 0.1%. Typically, a lower percentage implies that landlords are less inclined to reduce their asking prices, a behavior often seen when there is a high competition among renters. The median home value in the area is $237,829, which, combined with the relatively high FMR, points to a market where owning a home may be less accessible for many residents, thereby increasing the reliance on rentals.
The 25.3% renter share in ZIP 28612 is indicative of long-term housing pressure. A higher proportion of renters can mean sustained demand for rental properties, as it reflects a significant portion of the population unable or unwilling to purchase homes. This dynamic supports the notion that the rental market will continue to be active, driven by both affordability concerns and lifestyle choices.
In summary, ZIP 28612 appears to be a market where demand for rentals is strong and likely exceeds supply, as evidenced by the near-FMR market rents and low price-cut share. The substantial renter share also underscores the ongoing need for rental properties, making it a favorable environment for landlords and small-portfolio investors.
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.