Location: Hickory-Lenoir-Morganton, 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,130 | $174,322 | 0.65% | D |
| 3BR | $1,380 | $291,898 | 0.47% | F |
| 4BR | $1,680 | $496,372 | 0.34% | F |
| 5BR | $1,949 | $660,722 | 0.29% | F |
U.S. Census Bureau data (2024)
In investing in Section 8 properties in ZIP code 28630, located in Granite Falls, NC, there are several critical factors that could negatively impact your investment. First, tenant turnover is a significant concern due to the disparity between the market rent of $853 and the Fair Market Rent (FMR) set at $1100 for FY 2024. This difference suggests that tenants may seek higher-rent properties outside the Section 8 program, leading to increased turnover rates.
Vacancy exposure is another issue to consider. With an average Days on Market (DOM) being unavailable, it's challenging to predict how long a property might remain vacant. Vacancies can significantly reduce cash flow, especially when combined with the lower market rents compared to FMRs.
The deferred maintenance exposure is substantial given the typical home value of $258,028 and the median income of $63,835. Landlords must be prepared to invest in regular maintenance and upgrades to meet the standards required by the Section 8 program. The cost of maintaining properties can quickly add up, particularly if the income level of residents is relatively low.
However, these risks must be weighed against the high renter density in the area. With a 24.1% renter share, there is a strong likelihood of high demand for rental units, including those participating in the Section 8 program. High renter density often translates into a larger pool of potential voucher holders, which can provide a steady stream of tenants willing to pay the subsidized rent.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.