Location: Clay County, NC | Metro: Clay 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 | $910 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $980 | $231,295 | 0.42% | F |
| 2BR | $1,070 | $309,146 | 0.35% | F |
| 3BR | $1,480 | $366,252 | 0.4% | F |
| 4BR | $1,620 | $568,108 | 0.29% | F |
| 5BR | $1,879 | $777,980 | 0.24% | F |
U.S. Census Bureau data (2024)
ZIP code 28904, located in Hayesville, NC within the Clay County metro area, presents an interesting mix of metrics that can help position it relative to other ZIP codes in the county. The Fair Market Rent (FMR) for the area is set at $1,030 for fiscal year 2026, which is notably higher than the average market rent of $700. This suggests that the government's assessment of what constitutes a fair rent in the area exceeds the actual market rates, potentially indicating a favorable environment for landlords participating in the Section 8 program.
The median home value in ZIP 28904 stands at $348,923, which is likely above the average for the broader Clay County metro. This figure implies that the area might be slightly more expensive compared to surrounding regions, possibly due to its smaller town charm or unique characteristics that attract a certain demographic.
A key metric for understanding the rental market dynamics is the renter share, which is 20.5% in ZIP 28904. This percentage is significant because it indicates a substantial portion of the population relies on rental housing. However, the renter share alone does not fully define the market segment. When combined with the lower-than-FMR market rent, it suggests that there could be a segment of the rental market catering to those who might benefit from subsidized housing programs such as Section 8.
To determine if ZIP 28904 is a value pocket, mid-tier neighborhood, or a premium sub-market, we must consider the interplay between these figures. Given the higher FMR compared to the market rent, and the relatively high home value, ZIP 28904 appears to be a mid-tier neighborhood within the Clay County metro. It is neither the most affordable nor the most expensive option but offers a balance between rental opportunities and property values.
The divergence between the high renter share and below-metro home values does not necessarily signal a Section 8 sweet spot in this case. Instead, it reflects a community where a significant number of residents choose to rent rather than buy, possibly due to economic factors or lifestyle preferences. For landlords and small-portfolio investors, this ZIP code represents a moderate investment opportunity, with potential benefits from the Section 8 program and a reasonable market rent that can be adjusted upwards without significantly exceeding the FMR.
Investors should be cautious about pricing their rentals too close to the FMR without considering the local market conditions. While the FMR provides a guideline for what is considered fair rent, the actual market rent of $700 indicates that there may be downward pressure on rents in this area. Therefore, positioning rental properties at a rate slightly above $700 but below the $1,030 FMR could attract both market-rate tenants and those benefiting from Section 8 subsidies.
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.