Location: Hickory-Lenoir-Morganton, NC | Metro: Lincoln County, NC HUD Metro FMR Area
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 | $860 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $208,276 | 0.48% | F |
| 3BR | $1,330 | $328,364 | 0.41% | F |
| 4BR | $1,560 | $423,668 | 0.37% | F |
U.S. Census Bureau data (2024)
The ZIP code 28650, located in Maiden, NC within Catawba County and part of the Hickory-Lenoir-Morganton, NC MSA, presents an interesting market for Section 8 investors. The HUD Fair Market Rent (FMR) for FY 2024 is set at $1070, while the Zillow Observed Rental Index (ZORI) indicates a market rent of $1,528. This means that landlords accepting Section 8 vouchers will experience negative cash flow at the HUD FMR rate, as the difference between the market rent and the FMR does not cover typical operating expenses such as property management, maintenance, insurance, and utilities.
To determine the exact impact, let's calculate the rent-to-price ratio using the median home value of $312,914. With a market rent of $1,528, the annual rent is approximately $18,336, leading to a rent-to-price ratio of about 5.86%. This ratio suggests that the area has a relatively low rental yield compared to the value of homes, which can be a concern for investors looking to maximize returns through rental income alone.
However, the dynamics of the local real estate market also play a role in investment decisions. In this case, the median days on market (DOM) is not applicable (N/A), and the share of listings making price cuts is 0.2%, indicating a stable housing market with little fluctuation. While these factors suggest strong stability, they do not directly affect cash flow from Section 8 vouchers at the current FMR rates.
In summary, voucher tenants in ZIP 28650 cash flow negatively at the HUD FMR rate, meaning landlords will only see positive cash flow with premium units that command higher rents or through significant cost reductions. The strongest investor angle in this market is stability, given the low share of price cuts and the lack of volatility in the housing market.
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.