Location: Rutherford County, 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 | $1,300 |
| 1 Bedroom | $1,510 |
| 2 Bedrooms | $1,660 |
| 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,660 | $300,436 | 0.55% | F |
| 3BR | $2,010 | $445,843 | 0.45% | F |
| 4BR | $2,780 | $833,685 | 0.33% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 28756 in North Carolina might raise several concerns regarding the feasibility of investing in rental properties through the Section 8 program. Here, we address those concerns with the available data.
Objection 1: Will the Fair Market Rent (FMR) of $1,560 for ZIP 28756 in fiscal year 2024 cover the mortgage on a $256,448 home?
The FMR set by HUD is designed to ensure that families can afford decent housing while paying 30% of their adjusted income toward rent. For a $256,448 home, the mortgage payment will depend on interest rates and loan terms. However, using an average fixed-rate mortgage of 4.5% over a 30-year term, the monthly principal and interest payment would be approximately $1,280. This means that the FMR of $1,560 could cover the mortgage and leave some room for property taxes, insurance, and maintenance costs. It's important to note that if interest rates rise, so too will the monthly mortgage payments, which could affect the profitability of the investment.
Objection 2: Is there enough renter demand at 24.9%?
The 24.9% figure represents the percentage of households renting in ZIP 28756. While this percentage is relatively low compared to urban areas, it still indicates a significant number of potential tenants. The demand for rental units can be further gauged by looking at vacancy rates and the local job market. Unfortunately, the data provided does not include these specifics, but the existing rental percentage suggests that there is a baseline demand. Landlords should also consider the potential for growth in the rental market due to factors such as population increase or changes in employment opportunities.
Objection 3: Will vouchers keep pace with $644 market rents?
The current market rent of $644 is significantly below the FMR of $1,560. This suggests that voucher holders could potentially afford higher rents, which aligns with the FMR. However, whether vouchers will keep pace with rising market rents is uncertain without more recent data. Voucher amounts are adjusted annually based on HUD’s calculations, but they do not always perfectly match the local market conditions. Investors should monitor local HUD announcements and trends in market rents to anticipate any adjustments needed in their rental pricing strategy.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.