Location: Polk 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 | $368,486 | 0.45% | F |
| 3BR | $2,010 | $467,219 | 0.43% | F |
| 4BR | $2,780 | $657,342 | 0.42% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 28773, centered around Saluda, NC, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for the area is set at $1,690 for fiscal year 2024, while the Census ACS data indicates an average market rent of $1,309. This means that the FMR is $381 higher than the market rent, representing a 29% premium.
This gap makes ZIP 28773 a prime location for landlords and small-portfolio investors who are looking to capitalize on the yield potential of voucher tenants. With a median home value of $374,777 and a median income of $70,703, Saluda, NC offers a stable environment where the demand for affordable housing is evident. Only 16.0% of residents are renters, indicating that there is a limited supply of rental units relative to the number of voucher holders seeking housing.
The higher FMR ensures that landlords receive a guaranteed income that exceeds the local market rate, providing a financial buffer against the potential challenges of managing subsidized housing. Voucher tenants bring a level of stability and predictability to rental income, as their payments are backed by the government, which reduces the risk of non-payment compared to open-market tenants.
However, it's important to note that accepting Section 8 vouchers also comes with certain costs and responsibilities. Landlords must adhere to specific property standards and undergo inspections, which can be time-consuming. Additionally, the administrative process of working with the Housing Authority and handling tenant applications can be complex and require specialized knowledge.
In conclusion, the gap between FMR and market rent in ZIP 28773 presents a compelling opportunity for landlords and investors to achieve higher yields through Section 8 tenants. Despite the additional responsibilities, the financial benefits outweigh the costs, making it a strategic investment choice in the Saluda, NC market.
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.