Location: Asheville, NC | Metro: Asheville, NC MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,350 |
| 1 Bedroom | $1,510 |
| 2 Bedrooms | $1,680 |
| 3 Bedrooms | $2,060 |
| 4 Bedrooms | $2,780 |
| 5 Bedrooms | $3,225 |
| 6 Bedrooms | $3,612 |
| 7 Bedrooms | $3,901 |
| 8 Bedrooms | $4,096 |
U.S. Census Bureau data (2024)
The analysis of ZIP Code 28710, located in Bat Cave, North Carolina, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 28710 in fiscal year 2024 is set at $1560. However, the market rent is currently unreported, which makes it challenging to provide an exact percentage gap. Based on available data, the median home value in ZIP 28710 is $298,200, and the median household income is $55,250.
The FMR is lower than the reported median home value, suggesting that voucher tenants may be willing to pay only $1560 per month, which is significantly below the market rate. This scenario presents a potential challenge for landlords and small-portfolio investors, as accepting Section 8 tenants could mean renting properties at rates that are well below the open-market rates.
In ZIP 28710, 100% of the residents are renters, indicating a high demand for rental properties. Given the discrepancy between the FMR and the median home value, landlords might experience reduced yields if they choose to accept Section 8 tenants. The cost of housing voucher tenants below open-market rates can lead to financial strain, especially when considering maintenance and operational costs.
To mitigate these risks, landlords should carefully evaluate their investment goals and consider the long-term implications of renting to voucher tenants. While the FMR provides a baseline for rental pricing, it does not account for the full market value of properties in ZIP 28710. Therefore, landlords should seek to balance the need for affordable housing with the financial realities of property management.
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.