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 | $900 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,050 | $173,082 | 0.61% | D |
| 3BR | $1,410 | $235,118 | 0.6% | F |
| 4BR | $1,610 | $293,579 | 0.55% | F |
U.S. Census Bureau data (2024)
In evaluating ZIP code 28659, located in North Wilkesboro, NC, several key concerns arise regarding its suitability for investment, particularly for those considering Section 8 properties. Let's delve into these issues using the provided data.
Will FMR $990 (metro FY 2026) cover the mortgage on a $209,737 home?
The Fair Market Rent (FMR) for ZIP 28659 is set at $990 for FY 2026. To determine if this amount can cover the mortgage on a $209,737 home, we must consider the typical interest rates and loan terms. Assuming a standard 30-year fixed-rate mortgage at an average rate of 5%, the monthly mortgage payment for a $209,737 home would be approximately $1,135. This figure exceeds the FMR by $145 per month, indicating that the FMR alone will not fully cover the mortgage expenses. Investors should factor in additional income sources or consider lower-cost homes to ensure profitability.
Is there enough renter demand at 32.0%?
The rental demand in ZIP 28659 is measured at 32.0%. While this percentage reflects a moderate level of demand, it does not provide a complete picture without knowing the total number of households and the vacancy rate. A 32.0% rental rate suggests that one-third of the population is seeking rental housing, which is a significant portion but may still be insufficient depending on the competition in the area. The data does not specify the number of renters or the vacancy rate, so further research is needed to accurately gauge the market's capacity to absorb new rental units.
Will vouchers keep pace with $708 market rents?
The average market rent in ZIP 28659 is $708. Given that the FMR is higher at $990, it's reasonable to expect that voucher amounts might also be closer to the FMR. However, the data does not explicitly state the current average voucher amount. If vouchers are indeed around $990, they would comfortably cover the market rent. Should the actual voucher amount be lower, it could pose a challenge for landlords, especially if they aim to maximize their rental income. It's crucial to monitor local HUD guidelines and trends to anticipate any changes in voucher distribution.
Investing in ZIP 28659 requires careful consideration of these factors. While the potential exists for a steady stream of tenants through Section 8, the financials suggest a need for strategic planning to ensure long-term viability.
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.