Location: Asheville, NC | Metro: Asheville, NC MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,020 |
| 1 Bedroom | $2,330 |
| 2 Bedrooms | $2,540 |
| 3 Bedrooms | $3,030 |
| 4 Bedrooms | $4,230 |
| 5 Bedrooms | $4,907 |
| 6 Bedrooms | $5,496 |
| 7 Bedrooms | $5,936 |
| 8 Bedrooms | $6,233 |
U.S. Census Bureau data (2024)
To determine if a landlord should buy in ZIP 28729 (Etowah, NC) for Section 8 purposes, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $1460 cover the debt service on a property valued at $420,328?
No. The FMR of $1460 does not sufficiently cover the debt service on a property of that value. A property priced at $420,328 would likely require a higher rental income to meet financial obligations such as mortgage payments, insurance, and maintenance. Therefore, investing in this area for Section 8 tenants is not advisable based on this criterion alone.
2) How does the market rent of $1714 compare to the FMR?
Above. The market rent of $1714 is higher than the FMR of $1460. This indicates that landlords can potentially charge more than the FMR to non-Section 8 tenants, which could be beneficial for those willing to cater to a mixed tenant base. However, this does not directly impact the feasibility of purely Section 8 investments given the previous point about debt service coverage.
3) Is there sufficient demand with 12.1% of the population being renters and an unknown number of days on the market (DOM)?
It depends. While 12.1% of the population renting suggests some demand, the lack of data on the average days on the market makes it difficult to assess the urgency and competitiveness of finding tenants. Without knowing the DOM, it's unclear how quickly properties might be leased, which is critical for cash flow planning.
In summary, for a landlord considering purchasing a property in ZIP 28729 for Section 8 tenants, the answer is no. The FMR does not provide adequate rental income to cover the debt service on a property valued at $420,328. Additionally, the insufficient data on days on the market leaves uncertainty regarding the speed of leasing a property, which is crucial for effective cash flow 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.