Location: Wilkes County, NC | Metro: Wilkes 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 | $880 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,370 | $251,599 | 0.54% | F |
U.S. Census Bureau data (2024)
The ZIP code 28635 is located in a small-town setting characterized by a modest population of 2,669 residents. This community is primarily owned, with only 11.4% of the population renting their homes. The median income in this area is relatively low at $44,901, which contrasts with the median home value of $208,542, suggesting that homeownership is more prevalent among those with higher incomes. The economic landscape here is further defined by the Federal Market Rent (FMR) for Section 8 vouchers, which is set at $960 for the fiscal year 2026, compared to the current market rent of $920 as per the Census American Community Survey (ACS).
The FMR being slightly above the market rent indicates that there is potential for landlords to benefit from the Section 8 program without significantly undercutting the local rental market. However, the low percentage of renters suggests that the demand for rental properties may be limited, which could impact the number of available tenants. Despite this, the difference between the FMR and the market rent provides a margin for landlords to cover operational costs and still remain competitive.
For hands-off voucher operators, ZIP 28635 might present a challenge due to the limited rental market. These investors typically seek areas with higher rental rates and a larger pool of potential tenants. Conversely, for hands-on value-add buyers who are willing to invest time and resources into improving properties, this ZIP code could offer an opportunity. By enhancing the quality of rental units, these investors can potentially attract more tenants and command rents closer to the FMR, thereby maximizing returns while providing affordable housing options.
In summary, ZIP 28635 offers a niche market for Section 8 investments, favoring active management over passive strategies. Landlords should consider the local economic conditions and the potential for value enhancement when deciding whether to operate in this area.
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.