Section 8 Fair Market Rent (FMR) for ZIP 29710 - 2027

Investment Score for ZIP 29710

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	$1,550
1 Bedroom	$1,620
2 Bedrooms	$1,760
3 Bedrooms	$2,150
4 Bedrooms	$2,730
5 Bedrooms	$3,167
6 Bedrooms	$3,547
7 Bedrooms	$3,831
8 Bedrooms	$4,023

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
2BR	$1,760	$255,566	0.69%	D
3BR	$2,150	$363,216	0.59%	F
4BR	$2,730	$573,815	0.48%	F
5BR	$3,167	$701,411	0.45%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 29710 (Clover, NC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 29710 is set by HUD for 2026 as follows: - 0BR: $1400 - 1BR: $1470 - 2BR: $1610 - 3BR: $1980 - 4BR: $2520 These figures represent the maximum amount that a Section 8 voucher holder can be expected to pay towards rent. However, the actual rental market in Clover, NC, might present different dynamics. The FMR for a 2BR unit is $1610, which is only 20.0% of the median household income of $96,563. This suggests that the FMR is relatively affordable compared to the overall income levels in the area. Despite this affordability, there are constraints for voucher holders. The FMR is significantly lower than the Zillow median price for a 2BR property, which stands at $255,515. The price-to-FMR ratio for a 2BR unit is 13.2x, indicating that the cost of owning a home is much higher than renting. Therefore, voucher holders are limited to finding properties that accept their vouchers and are priced at or below the FMR. #### Affordability & Renter Profile The population of Clover, NC, is 40,595, with 17.2% of residents being renters. Given the occupancy rate of 92.4%, it is clear that the housing market is relatively tight. The median household income of $96,563 suggests that most residents have higher incomes, making them less reliant on government assistance programs like Section 8. However, the 17.2% renter population still represents a significant number of individuals who could benefit from these programs. The median income level indicates that the typical resident has a good financial standing, but the FMR for a 2BR unit at $1610 is still a reasonable portion of their income. For those who do qualify for Section 8, the cost of renting a 2BR unit would consume about 20% of their income, which is manageable but still a substantial expense. Given the tight market conditions, landlords who accept Section 8 vouchers may find themselves in a competitive position, as they will attract a segment of the population that is otherwise constrained by high rental costs. However, the challenge lies in finding properties that meet the criteria and are willing to accept vouchers. #### Investor Angle From an investor perspective, the ZIP code 29710 presents both opportunities and challenges. The FMR for a 2BR unit is $1610, which is significantly lower than the Zillow median price of $255,515. This implies that the cost of acquiring a property is much higher than the potential rental income. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the average rental rates and the cost of ownership. The FMR for a 2BR unit is $1610, but the Zillow median price suggests that the average purchase price is much higher. Assuming a conservative mortgage rate of 5% and a 20% down payment, the monthly mortgage payment for a 2BR unit would be approximately $1,170. This calculation is based on the following formula: \[ \text{Monthly Payment} = \frac{\text{Loan Amount} \times \text{Interest Rate} \times (1 + \text{Interest Rate})^{\text{Number of Payments}}}{(1 + \text{Interest Rate})^{\text{Number of Payments}} - 1} \] Where: - Loan Amount = $255,515 \times 0.80 = $204,412 - Interest Rate = 5% per year = 0.05/12 per month - Number of Payments = 30 years \times 12 months/year = 360 payments This results in a monthly mortgage payment of around $1,170. Adding in other expenses such as property taxes, insurance, and maintenance, the total cost of ownership could easily exceed the FMR. Therefore, the cash flow for an investor relying solely on FMR would likely be negative unless they can secure a lower purchase price or reduce operating costs. In terms of investment grade, Clover, NC, appears to be a moderate risk. The tight market conditions suggest strong demand for rental units, but the high price-to-FMR ratio indicates that the returns on investment may be limited. Investors should carefully evaluate their ability to manage properties and attract tenants who can afford the higher costs associated with owning a property in this area. #### Specific Actionable Insights 1. **Focus on Properties Below FMR**: Investors should look for properties that are priced below the FMR to ensure positive cash flow. For example, a 2BR unit priced at $1,500 or less would provide a better margin over the FMR of $1,610. 2. **Consider Multi-Family Units**: Given the higher FMR for larger units (e.g., 4BR at $2,520), multi-family units could offer better returns. Investors could target 3BR or 4BR units where the FMR is closer to the median income percentage, allowing for higher rental income. 3. **Evaluate Non-Voucher Tenants**: Since only 17.2% of the population are renters, and many may not rely on Section 8 vouchers, investors should also consider the broader rental market. Properties that cater to non-voucher tenants could command higher rents, potentially leading to better cash flow. #### Bottom Line For Section 8-focused investors, the ZIP code 29710 (Clover, NC) is a **Skip** recommendation. The high price-to-FMR ratio and the tight market conditions make it challenging to achieve positive cash flow while adhering strictly to FMR guidelines. Investors looking to enter this market should focus on properties that can generate higher rental income or consider diversifying into a mix of voucher and non-voucher tenants to balance the portfolio.

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.