Location: Rutherford County, NC | Metro: Rutherford County, NC
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,290 |
| 1 Bedroom | $1,300 |
| 2 Bedrooms | $1,520 |
| 3 Bedrooms | $2,030 |
| 4 Bedrooms | $2,060 |
| 5 Bedrooms | $2,390 |
| 6 Bedrooms | $2,677 |
| 7 Bedrooms | $2,891 |
| 8 Bedrooms | $3,036 |
U.S. Census Bureau data (2024)
In ZIP 28720, the economics of Section 8 housing can be broken down into several key components. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment is set at $1,390 per month for fiscal year 2026. This figure represents the maximum amount the Housing Choice Voucher program will pay towards rent for a two-bedroom unit in this specific ZIP code.
The local market rent for a two-bedroom apartment in ZIP 28720 is higher, at $1,717 per month according to the latest Census ACS data. This indicates that landlords participating in the Section 8 program receive less than the market rate for their properties.
To understand what a voucher actually pays, consider the following: the tenant is responsible for paying 30% of their adjusted monthly income towards rent. The government then pays the difference between the tenant's contribution and the SAFMR. Additionally, there are utility allowances which vary but typically cover a portion of the tenant's heating, cooling, water, and electricity costs.
For example, if a tenant's adjusted monthly income is $1,500, they would contribute $450 (30%) towards rent. If the SAFMR is $1,390, the government would pay the remaining $940 to meet the total rent amount. However, since the market rent is $1,717, the landlord would still fall short by $377 per month. This shortfall is the reimbursement gap that landlords often face when renting to tenants with vouchers.
Utility allowances add another layer to the calculation. These allowances are designed to help cover the cost of utilities and are based on the size of the household and the type of dwelling. In ZIP 28720, these allowances do not close the gap between the SAFMR and the market rent. Therefore, landlords must decide whether the guaranteed payment from the government and reduced risk of non-payment outweigh the lower rent compared to the local market.
In summary, for a two-bedroom apartment in ZIP 28720, landlords can expect a reimbursement gap of $327 per month when accounting for both the SAFMR and the typical tenant contribution. This gap is significant and should be carefully considered before accepting a Section 8 tenant.
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.