Location: Alleghany County, NC | Metro: Alleghany 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 | $820 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,070 | $252,357 | 0.42% | F |
| 3BR | $1,280 | $372,223 | 0.34% | F |
U.S. Census Bureau data (2024)
ZIP 28627, located in Glade Valley, NC, within the Alleghany County, NC metro area, serves as an ideal cash-flow anchor for a Section 8 portfolio strategy. The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is set at $990, while the local market rent stands at $643. This creates a significant spread of $347 per unit, ensuring that landlords can leverage the higher federal subsidy rates to generate positive cash flow.
The median home value in ZIP 28627 is $357,250, which suggests a relatively stable housing market. However, the primary focus for Section 8 investors should be on rental properties rather than appreciation plays. Given the lack of specific data on price-cut shares and days on market (DOM), it's clear that appreciation potential isn't the driving factor here. Instead, the emphasis should be on the guaranteed rental income provided by the Section 8 program.
The area also offers some diversification benefits, with a 32.3% renter share and a median income of $46,474. These figures indicate a moderate level of demand for rental housing, balanced by a reasonable income level among residents. Landlords can expect a steady stream of tenants who qualify for the Section 8 program, reducing the risk of vacancy.
In summary, ZIP 28627 is best suited as a cash-flow anchor due to the substantial difference between the federal subsidy rate and the local market rent. This ensures landlords can rely on consistent and above-market rental income, making it a valuable component of any Section 8-focused investment portfolio.
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.