Location: McDowell 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 | $226,557 | 0.73% | D |
| 3BR | $2,010 | $294,794 | 0.68% | D |
| 4BR | $2,780 | $372,751 | 0.75% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 28762, located in Old Fort, North Carolina, reveals a unique balance between yield potential and market stability. On the yield axis, the Federal Market Rent (FMR) for fiscal year 2024 is set at $1750. This figure represents the maximum rent that can be charged under the Section 8 program. In comparison, the market rent stands at $793, indicating a significant premium when utilizing Section 8 vouchers. The average home value in this area is $255,807, suggesting a moderate investment cost relative to the rental income potential.
Moving to the stability axis, the data shows that 22.9% of residents are renters. This percentage is relatively low, which might suggest limited demand for rental properties. However, the median household income is $66,410, providing some assurance regarding the financial health of potential tenants. The lack of data on days on market (DOM) makes it challenging to assess the speed at which rental units are typically filled, but the income figure offers a degree of comfort regarding tenant reliability.
Evaluating these factors, ZIP 28762 appears to be neither a high-yield/low-stability flip-style market nor a steady-cashflow zone. Instead, it occupies a middle ground. The substantial difference between the FMR and market rent suggests that there is considerable upside potential for landlords willing to participate in the Section 8 program. However, the lower percentage of renters and the absence of DOM data indicate that while the market is stable, it may not offer the same level of consistent cash flow as areas with higher rental populations.
To conclude, landlords and small-portfolio investors should consider the potential for higher yields through the Section 8 program, balanced against the slightly less stable rental market conditions. The combination of moderate home values and decent median income supports a viable investment strategy, particularly for those who can leverage Section 8 subsidies effectively.
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.