Section 8 Fair Market Rent (FMR) for ZIP 28806 - 2027

Investment Score for ZIP 28806

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,470
1 Bedroom	$1,700
2 Bedrooms	$1,850
3 Bedrooms	$2,200
4 Bedrooms	$3,080
5 Bedrooms	$3,573
6 Bedrooms	$4,002
7 Bedrooms	$4,322
8 Bedrooms	$4,538

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,700	$287,123	0.59%	F
2BR	$1,850	$328,934	0.56%	F
3BR	$2,200	$407,015	0.54%	F
4BR	$3,080	$535,038	0.58%	F
5BR	$3,573	$693,353	0.52%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 28806 (Asheville, NC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 28806 in Asheville, NC, is set at $1600 for a two-bedroom unit in 2026. However, the Zillow median price for a two-bedroom rental property in this area is $339,098, which translates to a monthly rent of approximately $1330 based on typical mortgage rates and property values. This indicates that the actual rents are slightly below the FMR, but still relatively high compared to the median household income. The price-to-FMR ratio of 17.7x suggests that properties are significantly overpriced relative to what the government considers fair market value. Voucher holders face significant constraints due to the high cost of living and the limited supply of affordable units. The FMR for a two-bedroom unit represents only 30.3% of the median household income ($63,273), which means that even if a tenant has a voucher, they would still need to contribute a substantial portion of their income towards rent. This could be challenging for low-income households, particularly those who might also be dealing with other financial burdens such as healthcare costs or education expenses. #### Affordability & Renter Profile With a population of 43,433 and a renter percentage of 40.1%, there are approximately 17,419 renters in ZIP code 28806. Given the occupancy rate of 75.4%, it implies that the housing market is relatively tight, with a higher demand for rental units than available supply. The median household income of $63,273 suggests that many residents are middle-class or lower-middle-class individuals, who may struggle to afford the average rental prices without assistance. The FMR for a two-bedroom unit is $1600, which is a critical benchmark for affordability. Since this amount represents 30.3% of the median income, it indicates that the majority of residents must spend a considerable portion of their earnings on housing. This tight market condition makes it difficult for low-income families to find suitable housing, especially when considering the additional costs associated with utilities and maintenance. #### Investor Angle From an investor perspective, the ZIP code 28806 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1600, which is slightly above the average market rent of around $1330. This means that investors can potentially achieve positive cash flow by renting properties at or near the FMR, although they would need to ensure that their properties meet the quality standards required by the Section 8 program. The investment grade for this ZIP code can be considered moderate. While the high price-to-FMR ratio suggests that properties are overpriced, the strong demand for rental units and the presence of a significant number of low-income households make it a viable market for Section 8-focused investments. However, investors should be cautious about the potential for increased competition and the need to maintain properties to a high standard to attract and retain tenants. #### Specific Actionable Insights 1. **Target Affordable Units**: Investors should focus on acquiring properties that are priced closer to the FMR. For instance, a two-bedroom unit priced at $1600 per month would be ideal for attracting Section 8 tenants. This ensures compliance with the program guidelines and maximizes the potential for positive cash flow. 2. **Consider Smaller Units**: Given the high price-to-FMR ratio, smaller units like one-bedroom apartments (with an FMR of $1460) might offer better returns and be more attractive to voucher holders. Additionally, these units are likely to have lower acquisition costs, making them more feasible for investors looking to enter the market. 3. **Maintain Quality Standards**: To remain competitive and attract Section 8 tenants, it is crucial to maintain the quality of the properties. Ensuring that units meet the Housing Quality Standards (HQS) set by the Department of Housing and Urban Development (HUD) will help secure long-term tenancy and avoid costly repairs or rejections. #### Bottom Line For Section 8-focused investors, the ZIP code 28806 offers a mixed picture. The high demand for rental units and the presence of a significant number of low-income households make it a potentially lucrative market. However, the tight housing market and the high price-to-FMR ratio suggest that investors should carefully select properties that align closely with the FMR to ensure positive cash flow and compliance with HUD requirements. Based on the provided data, the recommendation for investors is to **Hold** on to existing Section 8 properties and selectively **Buy** new ones that meet the affordability criteria. Avoiding overpriced properties and focusing on units that are priced near the FMR will be key to success in this 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.