Location: Hickory-Lenoir-Morganton, NC | Metro: Hickory-Lenoir-Morganton, NC MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $910 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP code 28667 centers around the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1180, while the Census ACS data indicates that the market rent is $808. This creates a gap of $372, which represents a 46% difference between what the government deems fair and what the market currently offers.
Given that the FMR exceeds the market rent, landlords and small-portfolio investors should consider this area a yield play. Voucher tenants under the Section 8 program can provide a stable source of income, as they are guaranteed to pay the rent stipulated by their vouchers. This means that even if the market rate is lower, the guaranteed payment aligns with the higher FMR, offering a potential profit margin above the typical rental rates.
In ZIP 28667, where 62.4% of residents are renters and the median household income is $26,354, the demand for affordable housing is high. The presence of Section 8 voucher holders ensures that landlords can fill units at rates that exceed the open-market average without the risk of non-payment. This makes it an attractive option for investors looking to capitalize on the rental market dynamics while supporting low-income families.
However, it's important to note that the cost of maintaining properties for voucher tenants might be higher due to the requirements set by the Housing Choice Voucher program. These include regular inspections and adherence to certain quality standards, which can impact the overall profitability. Despite these costs, the difference between the FMR and the market rent suggests a significant opportunity for yield, making it a worthwhile consideration for those involved in the rental market of ZIP 28667.
Data Sources: FMR data from HUD (2027). 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.