Location: Swain County, NC | Metro: Graham 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 | $860 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $910 | $190,870 | 0.48% | F |
| 2BR | $1,010 | $238,273 | 0.42% | F |
| 3BR | $1,360 | $274,255 | 0.5% | F |
| 4BR | $1,530 | $388,232 | 0.39% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 28771, located in Graham County, North Carolina, are straightforward. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) is set at $960 per month for the fiscal year 2026. This SAFMR is specifically tailored for this ZIP code, ensuring it reflects the local rental market conditions accurately.
In contrast, the local market rent for a two-bedroom unit, based on recent Census ACS (American Community Survey) data, averages $654 per month. This difference highlights the disparity between the government-set SAFMR and the actual market rates in Graham County.
A landlord participating in the Section 8 program receives reimbursement from the Housing Choice Voucher program. This reimbursement is calculated based on the SAFMR minus the tenant's portion of the rent, which is typically 30% of their income. In addition to the base rent, there are utility allowances, which vary but are generally modest.
To illustrate, if a tenant's monthly income is $1,500, their portion of the rent would be $450 (30% of $1,500). The landlord would receive the remaining amount up to the SAFMR of $960. Therefore, the landlord would receive $510 from the voucher program ($960 - $450), plus any applicable utility allowance. Utility allowances can range widely, but let’s assume an average allowance of $150. This brings the total reimbursement to $660 per month.
This reimbursement figure of $660 exceeds the local market rent of $654. However, it is still below the SAFMR of $960. Thus, the landlord would have a surplus of $6 compared to the local market rent, but a reimbursement gap of $294 compared to the SAFMR.
In summary, a landlord in ZIP 28771 who accepts a Section 8 voucher for a two-bedroom apartment will receive a total of $660 per month, assuming a $150 utility allowance. This leaves a surplus of $6 over the local market rent of $654, but a significant gap of $294 under the SAFMR of $960. Landlords should carefully consider these numbers when deciding whether to participate in the Section 8 program, balancing the guaranteed payment against the lower overall rent received.
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.