Section 8 Fair Market Rent (FMR) for ZIP 28645 - 2027

Investment Score for ZIP 28645

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$850
1 Bedroom	$890
2 Bedrooms	$1,060
3 Bedrooms	$1,360
4 Bedrooms	$1,780
5 Bedrooms	$2,065
6 Bedrooms	$2,313
7 Bedrooms	$2,498
8 Bedrooms	$2,623

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$890	$177,595	0.5%	F
2BR	$1,060	$155,392	0.68%	D
3BR	$1,360	$249,781	0.54%	F
4BR	$1,780	$376,698	0.47%	F
5BR	$2,065	$455,459	0.45%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 28645 (Lenoir, NC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 28645 is set by HUD for 2026. For a two-bedroom apartment, the FMR is $1150, which represents 26.7% of the median household income in Lenoir, NC. This suggests that the cost of renting a two-bedroom unit is relatively affordable compared to the average income level. However, the actual rental market price for a two-bedroom apartment is significantly higher, with Zillow reporting a median price of $157,229. The price-to-FMR ratio of 11.4x indicates that the actual market rent for a two-bedroom unit is likely around $13,210 annually ($1100 monthly), which is well above the FMR. This discrepancy means that Section 8 voucher holders face significant constraints when trying to find suitable housing. They must locate landlords willing to accept the voucher at the lower FMR rate, which can be challenging given the high market rents. The difference between the FMR and market rent could lead to a shortage of available units for voucher holders, as many landlords might prefer higher-paying tenants. #### Affordability & Renter Profile In ZIP code 28645, 29.1% of the population are renters, indicating a moderate demand for rental properties. With a total population of 45,997, there are approximately 13,400 renters. The occupancy rate of 88.5% suggests that the rental market is fairly tight, with most available units being occupied. Given the median household income of $51,650, the affordability of housing is a critical issue for many residents. The FMR for a two-bedroom unit at $1150 is indeed affordable for those earning the median income, but the actual market rent of $1100 is less so, especially considering other living expenses. The high price-to-FMR ratio also implies that the market is somewhat overpriced relative to what is considered fair by HUD standards. This tight market condition makes it difficult for low-income households to find affordable housing without assistance. Additionally, the disparity between FMR and market rent could indicate a potential mismatch between the needs of low-income renters and the supply of affordable units. #### Investor Angle From an investor perspective, the ZIP code 28645 presents a mixed picture. The FMR for a two-bedroom unit is $1150, while the actual market rent is estimated to be around $1100. Although the FMR is slightly below the market rent, it still provides a reasonable opportunity for cash flow, especially if the investor can secure a property at a price aligned with the FMR. However, the high price-to-FMR ratio of 11.4x suggests that the purchase price of rental properties in this area is considerably higher than what would be considered fair based on HUD's standards. This means that an investor purchasing a property at the median price of $157,229 would need to consider the long-term implications of the higher purchase cost and whether the projected rental income can sustain the investment. Given the tight rental market and the percentage of renters, there is a strong likelihood that demand will continue to support rental prices. However, the challenge lies in finding properties that can be rented out at the FMR without significant vacancy periods. The investment grade for this ZIP code would be considered moderate due to the balance between demand and supply, coupled with the high purchase prices relative to FMR. Investors should carefully evaluate their ability to manage properties effectively and attract tenants who can pay the FMR. #### Specific Actionable Insights 1. **Focus on Properties Below FMR**: Investors should target properties priced below the FMR to ensure positive cash flow. For instance, a two-bedroom property priced at $115,000 or less would be more attractive for Section 8 voucher holders and could provide better returns. 2. **Consider Multi-Family Units**: Given the higher FMR for larger units, multi-family properties could offer a more viable option. A three-bedroom unit with an FMR of $1400 might be easier to fill and could provide a higher monthly rental income compared to single-family homes. 3. **Engage with Local Landlords**: Building relationships with local landlords who are familiar with the Section 8 program can help navigate the challenges of finding tenants. These landlords often have insights into the local market and can provide guidance on how to make properties appealing to voucher holders. #### Bottom Line For Section 8-focused investors, the ZIP code 28645 presents a moderately favorable environment. The tight rental market and high demand for affordable housing suggest that there is a solid base of potential tenants. However, the high purchase prices relative to FMR indicate that investors need to be cautious about the initial investment and ensure they can manage properties effectively to attract Section 8 voucher holders. **Recommendation:** **Hold**. Investors should hold off on making large investments until they can secure properties at or below the FMR. Engaging with local landlords and focusing on multi-family units could be a strategic approach to mitigate risks and improve chances of success.

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.