Section 8 Fair Market Rent (FMR) for ZIP 28734 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 28734

• Macon Program For Progress (Franklin, NC) - 228 Section 8 vouchers

To determine if a landlord should buy in ZIP 28734 (Franklin, NC) for Section 8, follow this decision tree:

Step 1: Can the Fair Market Rent (FMR) of $970 cover the debt service on a $299,839 property?

• No: The FMR of $970 does not sufficiently cover the debt service on a property valued at $299,839. Debt service includes principal and interest payments on a mortgage, property taxes, insurance, and other maintenance costs. At this price point, the FMR would likely fall short, making it unprofitable to invest in Section 8 properties.
• Yes: Proceed to Step 2.

Step 2: How does the ZORI (Zillow's Estimated Rental Income) of $1,100 compare to the FMR of $970?

• ZORI is above FMR: The market rent of $1,100 is higher than the FMR, indicating that landlords can potentially charge more than what the government will subsidize for Section 8 tenants. This could lead to a shortfall where landlords must pay the difference between the subsidized amount and the market rent. It depends on how much of a loss you're willing to bear or if you can find ways to reduce costs to make up for the difference.
• ZORI is at or below FMR: Proceed to Step 3.

Step 3: Do the 23.2% of renters combined with a 41-day Days on Market (DOM) indicate sufficient demand?

• No: The rental rate of 23.2% is relatively low, and while the 41-day DOM suggests some demand, it may not be robust enough to support a significant number of Section 8 units. Landlords might struggle to fill vacancies consistently without offering incentives that reduce profitability.
• Yes: Franklin, NC has a moderate rental rate of 23.2%, and a 41-day DOM indicates reasonable demand. However, landlords should still consider the overall economic conditions, competition from non-Section 8 rentals, and the potential for long-term stability before making an investment.
• It Depends: For those who are willing to accept a lower profit margin or have experience managing Section 8 properties, the 23.2% rental rate and 41-day DOM could still present an opportunity. It's crucial to evaluate additional factors such as the local job market, population growth, and the availability of Section 8 vouchers in the area.

The decision to invest in ZIP 28734 for Section 8 properties hinges on these key metrics and requires careful consideration of the financial implications and market dynamics.

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.