Section 8 Fair Market Rent (FMR) for ZIP 28734 - 2027
Location: Macon County, NC | Metro: Clay County, NC
Investment Score for ZIP 28734
F
Monthly Rent (2BR)
$1,010
Median Price (2BR)
$258,683
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $800 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
Investment Analysis by Bedroom Size
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms |
Monthly FMR |
Median Price |
1% Rule |
Grade |
| 1BR |
$860 |
$189,215 |
0.45% |
F |
| 2BR |
$1,010 |
$258,683 |
0.39% |
F |
| 3BR |
$1,290 |
$343,845 |
0.38% |
F |
| 4BR |
$1,410 |
$409,498 |
0.34% |
F |
| 5BR |
$1,636 |
$531,510 |
0.31% |
F |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$54,021
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). Median home prices from Zillow (2026-07-31). 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.