Watauga County, NC: Fair Market Rent 2027 and Income Limits

Official HUD figures for landlords and renters, effective October 1, 2026 (rents) and May 1, 2026 (income limits).

$1,3112-bedroom FMR, FY2027

$1,1241-bedroom FMR, FY2027

$71,70080% income limit, family of 4 (FY2026)

$86,900Median family income (FY2026)

The FY2027 Fair Market Rent for a two-bedroom unit in Watauga County is $1,311 a month, up 11.4% from $1,177 in FY2026. Watauga County belongs to the Watauga County, NC FMR area (non-metro county), so the same figures apply across that area. FMRs are gross rents: rent plus all tenant-paid utilities except phone, cable and internet.

Fair market rent in Watauga County by bedroom count

Unit size	FY2027 FMR	FY2026 FMR	Change	Payment standard range (90–110%)
Studio	$916	$822	+11.4%	$825 – $1,007
1 bedroom	$1,124	$988	+13.8%	$1,012 – $1,236
2 bedrooms	$1,311	$1,177	+11.4%	$1,180 – $1,442
3 bedrooms	$1,737	$1,504	+15.5%	$1,564 – $1,910
4 bedrooms	$2,191	$1,974	+11.0%	$1,972 – $2,410

Source: HUD Fair Market Rents FY2027 (effective October 1, 2026) and FY2026 (revised file), details.

What can a landlord charge a Section 8 tenant here?

The FMR is not a cap on what you can ask on the open market. For a Housing Choice Voucher tenant, the local housing authority sets a payment standard, normally between 90% and 110% of the FMR (or of the ZIP-level Small Area FMR where those apply). For a two-bedroom unit in Watauga County that is typically $1,180 to $1,442 including utilities. You can charge more than the payment standard if the rent passes the housing authority's rent-reasonableness test and, at move-in, the tenant's share stays within 40% of their adjusted monthly income. Ask the housing authority for its current payment standard schedule.

Can local renters afford the fair market rent?

$30,164median income of renter households

$1,127Median gross rent, all units

45%Rent-to-income ratio (median rent ÷ median renter income)

66%of renter households pay 30% or more of income on rent

At the 30% rule, a renter household earning the local median of $30,164 can afford about $754 a month including utilities. The FY2027 two-bedroom Fair Market Rent of $1,311 is $557 (73.8%) more than that. To rent a two-bedroom at the FMR, a household needs $52,440 a year under the 30% rule, or $47,196 under the common landlord rule that income must be three times the rent.

Watauga County, ACS 2020–2024	Estimate ± MOE
Median gross rent (rent + utilities)	$1,127 ±$85
Median income of renter households	$30,164 ±$4,886
Renters paying 30% or more of income (cost-burdened)	65.9% ±5.1
Renters paying 50% or more (severely cost-burdened)	47.1% ±4.8
Renter households (where the share can be computed)	7,154

Change since 2015–2019

	ACS 2015–2019	ACS 2020–2024	Change
Median gross rent	$870	$1,127	+29.5%
Median renter household income	$22,451	$30,164	+34.4%
Renters paying 30%+ of income	60.1%	65.9%	+5.8 pts

Rent-to-income calculator: does an applicant qualify? → · Most affordable counties to rent in this state →

Source: U.S. Census Bureau, American Community Survey 5-Year Estimates 2020–2024 and 2015–2019 (tables B25064, B25119, B25070). ± = margin of error at 90% confidence. Dollar figures are not adjusted for inflation.

HUD income limits for Watauga County (FY2026)

Income limits decide who qualifies for Section 8 vouchers, public housing and most HUD-assisted units. The area median family income is $86,900 (FY2025: $94,300, −7.8%). Small figures under each limit show the change from FY2025.

Household size	1 person	2 people	3 people	4 people	5 people	6 people	7 people	8 people
Extremely low income (30%)	$18,850 −5.0%	$21,640 −4.5%	$27,320 +2.5%	$33,000 +2.6%	$38,680 +2.7%	$44,360 +2.8%	$50,040 +2.9%	$55,720 +2.9%
Very low income (50%)	$31,400 −5.0%	$35,900 −4.9%	$40,350 −4.9%	$44,800 −5.0%	$48,450 −4.9%	$52,000 −4.9%	$55,600 −5.0%	$59,150 −5.0%
Low income (80%)	$50,250 −4.9%	$57,400 −5.0%	$64,600 −4.9%	$71,700 −5.0%	$77,450 −5.0%	$83,200 −5.0%	$88,950 −5.0%	$94,650 −5.0%

The 30% limit is HUD's “extremely low income” limit: the higher of 30% of median income or the federal poverty guideline, but never above the 50% limit. That is why it can rise faster than 30% of median for larger households. Tax-credit (LIHTC) properties use separate Multifamily Tax Subsidy Project limits.

Source: HUD Section 8 Income Limits FY2026 (effective May 1, 2026) and FY2025, details.