Location: Macon County, NC | Metro: Macon County, NC
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 | $700 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,330 |
| 5 Bedrooms | $1,543 |
| 6 Bedrooms | $1,728 |
| 7 Bedrooms | $1,866 |
| 8 Bedrooms | $1,959 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $850 | $199,884 | 0.43% | F |
| 2BR | $1,010 | $271,998 | 0.37% | F |
| 3BR | $1,230 | $338,950 | 0.36% | F |
U.S. Census Bureau data (2024)
The average market rent in ZIP 28763, which includes Otto, NC, stands at $975. Comparatively, the Fair Market Rent (FMR) for the same area, as set by HUD for fiscal year 2026, is $970. This means the FMR is slightly lower than the market rent by $5, or approximately 0.5%.
The gap, though minimal, suggests that voucher tenants might pay slightly less than the open-market rate. However, given the low rental market temperature in Otto, NC, landlords could still see a decent yield. The median home value in Otto, NC, is $306,997, and the median income is $72,269. With only 11.1% of residents being renters, the demand for rental properties is relatively low.
Despite the slight disparity between the FMR and market rent, the cost of housing voucher tenants below open-market rates is negligible. Landlords should be aware that the rental market in Otto, NC, is cooling, with rent having decreased by $225 in the past year. This trend indicates a shift towards lower rents, making it important for landlords to consider the potential impact on their overall yield.
In summary, while the FMR is marginally below the market rent, the difference is minimal and unlikely to significantly affect the profitability of rental properties in Otto, NC. However, the overall rental market conditions suggest caution in setting high rents, as the demand is low and prices are trending downward.
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.