Section 8 Fair Market Rent (FMR) for ZIP 28655 - 2027

Investment Score for ZIP 28655

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	$1,300
1 Bedroom	$1,510
2 Bedrooms	$1,660
3 Bedrooms	$2,010
4 Bedrooms	$2,780
5 Bedrooms	$3,225
6 Bedrooms	$3,612
7 Bedrooms	$3,901
8 Bedrooms	$4,096

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,660	$188,877	0.88%	C
3BR	$2,010	$288,449	0.7%	D
4BR	$2,780	$414,056	0.67%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 28655 (Morganton, NC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Morganton, NC, as of 2026, is set at $1370 for a two-bedroom unit. This represents 28.5% of the median household income in the area, which stands at $57,713. However, the actual rental prices in the market can be significantly higher. For instance, the Zillow median price for a two-bedroom property is $186,438, indicating that the price-to-FMR ratio is approximately 11.3 times. This means that a two-bedroom unit could rent for around $15,600 annually, or $1300 monthly, based on typical rental rates derived from home values. Given this disparity, Section 8 voucher holders face significant constraints. The voucher amount ($1370 for a 2BR) is likely insufficient to cover the market rate for comparable units, especially considering the high price-to-FMR ratio. Consequently, voucher holders must either settle for lower-quality housing or seek out properties where landlords accept the voucher amount. #### Affordability & Renter Profile In ZIP code 28655, 27.3% of the population are renters, which translates to roughly 15,068 individuals or households. The occupancy rate of 89.8% suggests that the rental market is relatively tight, with most available units being occupied. Given the median household income of $57,713, many residents may struggle to afford market-rate rentals, particularly those who rely on Section 8 vouchers. The median household income indicates that the average renter would find it challenging to pay more than $1370 per month for a two-bedroom unit, which is the maximum allowed under the FMR guidelines. This makes the rental market somewhat competitive for low-income families, who may have limited options due to the high price-to-FMR ratio. #### Investor Angle From an investor perspective, the ZIP code 28655 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1370, but the actual rental prices are much higher, with the Zillow median suggesting a potential rental rate of $1300 per month. However, the FMR is the ceiling for what Section 8 voucher holders can pay, meaning investors relying solely on Section 8 tenants will need to adjust their expectations. To determine if the ZIP is cash-flow positive at FMR, we need to consider the cost of acquiring and maintaining rental properties. Assuming a purchase price of $186,438 for a two-bedroom unit, the annual mortgage payment (using a 30-year fixed-rate mortgage at 4%) would be approximately $9,000. Adding in maintenance costs, property taxes, and insurance, the total annual expenses might range from $10,000 to $12,000. At $1370 per month, the annual rental income would be $16,440, which is above the estimated annual expenses, making it theoretically cash-flow positive. However, the investment grade depends on factors such as vacancy rates, tenant turnover, and the willingness of landlords to accept Section 8 vouchers. Given the tight market and high occupancy rate, there is a risk of higher vacancy rates for properties that only accept Section 8 tenants. Additionally, the competition from market-rate rentals could make it difficult to fill units consistently. #### Specific Actionable Insights 1. **Target Lower-Rate Properties**: Investors should focus on acquiring properties that can be rented at or slightly below the FMR. This strategy can help ensure steady occupancy and avoid the risk of high vacancy rates. For example, targeting a two-bedroom unit priced at $1200-$1300 per month would align better with the FMR and the needs of Section 8 voucher holders. 2. **Consider Mixed-Income Strategies**: To mitigate the risks associated with exclusively renting to Section 8 tenants, investors might consider mixed-income strategies. This involves renting some units to voucher holders and others to market-rate tenants. For instance, a property with four units could have two rented at FMR and two rented at market rates, balancing the financial risks and rewards. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can provide valuable insights into the demand for Section 8 units and potentially increase the likelihood of securing tenants. Local authorities often have programs to incentivize landlords to accept vouchers, which can be beneficial for investors. #### Bottom Line For Section 8-focused investors, ZIP code 28655 presents a mixed picture. While the market is theoretically cash-flow positive at FMR, the high price-to-FMR ratio and tight rental market suggest that there could be challenges in maintaining consistent occupancy. Therefore, the recommendation is to **Hold** on investments in this ZIP code unless you can secure properties at or below the FMR levels. Engaging in mixed-income strategies or building relationships with local housing authorities can improve the viability of these investments. However, given the competitive nature of the market and the potential for higher vacancy rates, caution is advised before making new purchases.

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.