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 | $860 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $305,614 | 0.33% | F |
| 3BR | $1,360 | $354,347 | 0.38% | F |
U.S. Census Bureau data (2024)
In ZIP code 28665 located in Purlear, NC, there are several potential issues that could impact a Section 8 investment. First, tenant turnover can be a significant problem due to the disparity between the market rent of $684 and the Fair Market Rent (FMR) of $930 for FY 2026 in the metro area. This gap indicates that tenants might struggle to cover their portion of the rent, leading to higher turnover rates. Second, vacancy exposure is a concern since the average number of days on the market (DOM) is not available, which makes it difficult to predict how long properties might remain vacant. Lastly, deferred maintenance is a risk given the typical home value of $281,433 and a median income of $45,685. The lower income levels suggest that property owners might need to invest more in maintaining and improving their properties to attract and retain tenants.
However, these risks are balanced by the high concentration of renters in the area, with 17.6% of residents being renters. High renter density typically translates into a robust demand for housing vouchers, which can stabilize rental income and reduce the financial impact of vacancy periods. Additionally, the FMR provides a benchmark that ensures landlords receive a fair rent amount, mitigating some of the financial risks associated with lower market rents.
The verdict for ZIP 28665 is moderate risk for a first-time Section 8 landlord. While there are notable challenges such as tenant turnover and the need for regular maintenance, the strong voucher demand helps to offset these concerns. Landlords should prepare for the possibility of needing to invest in property upkeep and be ready to manage higher tenant turnover rates compared to areas with more equitable rent-to-income ratios.
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.