Location: Asheville, NC | Metro: Asheville, NC MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,550 |
| 1 Bedroom | $1,790 |
| 2 Bedrooms | $1,950 |
| 3 Bedrooms | $2,320 |
| 4 Bedrooms | $3,250 |
| 5 Bedrooms | $3,770 |
| 6 Bedrooms | $4,222 |
| 7 Bedrooms | $4,560 |
| 8 Bedrooms | $4,788 |
To determine if a landlord should buy in ZIP code 28814 for Section 8 purposes, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $1750 cover the debt service on a property?
No. If the FMR of $1750 does not clear the debt service on a property, then investing in this area for Section 8 is not advisable. The primary goal is to ensure that the rental income can at least meet the mortgage payments and other expenses associated with property ownership.
Yes. If the FMR of $1750 does cover the debt service, proceed to the next question.
2) How does the market rent compare to the FMR?
Market rent is above FMR. This suggests that the area might be too expensive for most Section 8 tenants. Landlords would need to consider whether they can attract tenants willing to pay the higher market rates or if they will have to accept lower rents, which could affect profitability.
Market rent is equal to or slightly below FMR. This indicates that the market conditions are favorable for Section 8 tenants. Landlords can expect their properties to be rented out at or near the FMR without significant difficulty.
Market rent is significantly below FMR. This scenario means that landlords can potentially set their rents at the FMR level and still attract tenants. However, they must also consider the overall demand for rentals in the area.
3) Is there sufficient demand with N/A% of renters and N/A-day Days on Market (DOM)?
N/A% of renters + N/A-day DOM indicates low demand. If the percentage of renters is low and properties take a long time to rent out, this suggests that the market is not robust enough to support Section 8 investments. Landlords should look for areas with higher rental demand.
N/A% of renters + N/A-day DOM indicates moderate demand. With moderate demand, landlords can expect their properties to be rented out eventually but may face some competition. It depends on the landlord's risk tolerance and willingness to wait for tenants.
N/A% of renters + N/A-day DOM indicates high demand. High demand means that properties are rented quickly, which is ideal for Section 8 investments. Landlords can expect their properties to be occupied promptly, reducing vacancy costs.
Note: Specific percentages and DOM figures are required to provide a concrete analysis. Without these details, the decision-making process remains incomplete.
Data Sources: FMR data from HUD (2027).
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.