Location: Asheville, NC | Metro: Asheville, NC MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,330 |
| 1 Bedroom | $1,530 |
| 2 Bedrooms | $1,670 |
| 3 Bedrooms | $2,010 |
| 4 Bedrooms | $2,780 |
| 5 Bedrooms | $3,225 |
| 6 Bedrooms | $3,612 |
| 7 Bedrooms | $3,901 |
| 8 Bedrooms | $4,096 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,670 | $333,265 | 0.5% | F |
| 3BR | $2,010 | $448,786 | 0.45% | F |
| 4BR | $2,780 | $581,213 | 0.48% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 28748, which includes Leicester, North Carolina in Buncombe County, are driven by the SAFMR (Small Area Fair Market Rent) rather than broader regional averages. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $1350. This rate is specifically tailored to reflect the rental market conditions within this ZIP code, ensuring it accurately compensates landlords based on local demand and supply.
In contrast, the local market rent for a similar two-bedroom unit, as reported by the Census American Community Survey (ACS), stands at $1,187. This indicates that the SAFMR is higher than the average market rent, offering a potential advantage to landlords who participate in the program.
A landlord's actual reimbursement under a Section 8 voucher is determined by calculating the tenant's portion of the rent plus any utility allowances. The tenant's portion is typically 30% of their income, which must be below a certain threshold to qualify for the program. For simplicity, let’s assume the tenant’s income is such that their portion of the rent is $405 (30% of $1350). This leaves the remaining $945 to be covered by the federal government through the voucher program. Additionally, the voucher might include utility allowances, which can vary but often add another $100-$150 to the reimbursement amount.
Therefore, if we take an average utility allowance of $125, the total reimbursement a landlord would receive for a two-bedroom apartment in ZIP 28748 would be approximately $1070 ($405 tenant portion + $665 government portion + $125 utilities).
This creates a surplus situation where the landlord receives more than the local market rent. In this case, the surplus is $1070 - $1187 = -$117. However, since the SAFMR is higher at $1350, the landlord effectively receives $1070 out of a possible $1350, leaving a surplus of $1350 - $1070 = $280 over the market rent. This means that even though the reimbursement is slightly less than the SAFMR, it still exceeds the average local market rent, providing landlords with an additional $280 per month above the typical market rate for a two-bedroom unit.
In summary, participating in the Section 8 program in ZIP 28748 can be financially beneficial for landlords, as the reimbursement rates are designed to be competitive with local market rents, potentially leading to a monthly surplus of $280 for a two-bedroom unit.
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.