Section 8 Fair Market Rent (FMR) for ZIP 28906 - 2027

Location: Clay County, NC | Metro: Cherokee County, NC

Investment Score for ZIP 28906

Monthly Rent (2BR)

$1,010

Median Price (2BR)

$290,610

1% Rule

0.35%

Annual Yield

4.17%

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	$800
1 Bedroom	$860
2 Bedrooms	$1,010
3 Bedrooms	$1,340
4 Bedrooms	$1,590
5 Bedrooms	$1,844
6 Bedrooms	$2,065
7 Bedrooms	$2,230
8 Bedrooms	$2,342

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	$860	$211,140	0.41%	F
2BR	$1,010	$290,610	0.35%	F
3BR	$1,340	$334,362	0.4%	F
4BR	$1,590	$384,891	0.41%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

20,526

Median Household Income

$55,759

Housing Units

13,362

Renter Percentage

15.8%

Occupancy Rate

68.8%

Renter Occupied

1,451

Murphy, North Carolina, located in ZIP code 28906, is a small town nestled in the mountains of western North Carolina, offering a tranquil setting with easy access to outdoor recreational activities. The local real estate market reflects a balance between affordable living and the demand for housing in a scenic area.

The Fair Market Rent (FMR) for a two-bedroom apartment in the metro area for fiscal year 2026 is set at $930.
The average market rent for properties in Murphy, based on Census American Community Survey (ACS) data, stands at $797.
The median home value in the area is $278,315, indicating a moderate price range for homeownership.
Renters make up 15.8% of the housing market, showing a smaller but present rental demand.
The days on market (DOM) for properties in Murphy averages at 99 days, suggesting a relatively quick turnover in the real estate listings.
The median household income in the area is $55,759, providing insight into the economic profile of potential tenants and buyers.

Analyzing these data points, Murphy presents a modest yet stable investment opportunity for landlords and small-portfolio investors. The gap between the FMR and actual market rent suggests potential for modest rental income growth. The lower renter share indicates that while there's room for growth, the market isn't saturated with rental properties. A shorter DOM signals a healthy market where properties sell quickly, and the median income figure supports the feasibility of renting to a broad segment of the population without excessive risk. Overall, Murphy offers a blend of affordability and quality of life that can be leveraged for steady returns, especially if targeting longer-term rentals or second-home buyers seeking a mountain retreat.

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.