Section 8 Fair Market Rent (FMR) for ZIP 29716 - 2027
Location: Charlotte-Concord-Gastonia, NC | Metro: Charlotte-Concord-Gastonia, NC-SC HUD Metro FMR Area
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $1,420 |
| 1 Bedroom | $1,480 |
| 2 Bedrooms | $1,610 |
| 3 Bedrooms | $1,970 |
| 4 Bedrooms | $2,500 |
| 5 Bedrooms | $2,900 |
| 6 Bedrooms | $3,248 |
| 7 Bedrooms | $3,508 |
| 8 Bedrooms | $3,683 |
To determine if you should buy in ZIP code 29716 for Section 8 purposes, follow this decision tree:
- Does FMR $1410 (zip FY 2024) clear debt service on a property?
- If yes: The Fair Market Rent (FMR) of $1410 is sufficient to cover your debt service. This means that the rental income from a Section 8 tenant would meet your financial obligations.
- If no: Do not purchase a property in this area for Section 8 tenants unless you can find a way to increase the FMR or reduce your debt service costs.
- Is market rent above, at, or below FMR?
- If market rent is above FMR: The local market offers higher rents than the FMR. Consider whether the additional income from market-rate tenants outweighs the benefits of having Section 8 tenants.
- If market rent is at FMR: Market conditions align with the FMR, making Section 8 tenancy a viable option without sacrificing potential rental income.
- If market rent is below FMR: Section 8 tenants could provide better income stability compared to the local market rates. However, evaluate the long-term prospects of the local rental market.
- Are renters' demand and days on market (DOM) sufficient?
- If there is enough demand and DOM is reasonable: The rental market in ZIP 29716 supports a healthy turnover rate, indicating that finding tenants, including those on Section 8, should be straightforward.
- If demand is low or DOM is high: It might be challenging to fill vacancies, which could lead to periods where the property is not generating income. Assess the risk and consider other investment opportunities.
The final decision will depend on how these factors align with your investment strategy and risk tolerance. For ZIP 29716, the FMR of $1410 is a key figure that must cover your debt service. Market rent comparisons and the local demand for rentals will further refine your decision.
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.