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 | $850 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,030 | $281,048 | 0.37% | F |
| 3BR | $1,420 | $312,724 | 0.45% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 28909 in Warne, NC, reveals some interesting insights into the potential returns for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a two-bedroom apartment in the metro area for fiscal year 2026 is set at $1,000 per month. Using this figure, we can calculate an annualized rental income of $12,000.
To derive the gross yield, we compare this rental income to the median home value of $287,365. The calculation is straightforward:
$12,000 / $287,365 = 0.0417 or 4.17%
This represents the implied gross yield if the property were rented at the FMR rate under the Section 8 program. However, it's important to note that this scenario assumes the property can be rented out continuously at the FMR rate, which may not always be the case due to the nature of the Section 8 program and the dynamics of the local rental market.
In contrast, the market rent for the area is listed as N/A, indicating a lack of available data. This absence of information makes it difficult to accurately assess the potential gross yield based on market rates. If the market rent were higher than the FMR, the gross yield would also be higher, potentially offering better returns for landlords who do not participate in the Section 8 program.
Given the renter density of 6.9%, it's clear that the demand for rental properties in Warne, NC, is relatively low. This suggests that landlords might face challenges in maintaining continuous occupancy, especially when relying solely on Section 8 tenants. Additionally, the N/A-day DOM (days on market) indicates uncertainty regarding how quickly properties can be leased, further complicating the investment decision.
In conclusion, while the Section 8 program offers a guaranteed gross yield of 4.17%, the reality of the local rental market may present additional challenges. Landlords and investors should carefully consider these factors before making decisions, as the actual performance could vary significantly from the calculated gross yield. The lack of market rent data and the low renter density point towards the necessity of a thorough understanding of the local housing dynamics to ensure successful investments.
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.