Location: Winston-Salem, NC | Metro: Winston-Salem, NC HUD Metro FMR Area
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 | $1,040 |
| 1 Bedroom | $1,180 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,690 |
| 4 Bedrooms | $2,050 |
| 5 Bedrooms | $2,378 |
| 6 Bedrooms | $2,663 |
| 7 Bedrooms | $2,876 |
| 8 Bedrooms | $3,020 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,280 | $225,801 | 0.57% | F |
| 3BR | $1,690 | $380,636 | 0.44% | F |
| 4BR | $2,050 | $555,816 | 0.37% | F |
| 5BR | $2,378 | $686,188 | 0.35% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 27006 in Advance, North Carolina, centers around the significant disparity between the Fair Market Rent (FMR) and the market rent, known as the Zillow Rent Index (ZORI). For fiscal year 2024, the FMR is set at $1150, while the ZORI stands at $2057. This creates a gap of $907, which represents approximately 44% of the ZORI. The FMR being lower than the market rent indicates that landlords who accept housing vouchers will be renting their properties below the open-market rates.
In Advance, where 12.2% of residents are renters and the median home value is $408,595, the decision to participate in the Section 8 program can have both advantages and disadvantages. The median income in the area is $96,580, suggesting that many potential voucher holders might face challenges affording market-rate rentals. Landlords must consider the financial implications of this gap, as it translates into a direct reduction in rental income. Accepting vouchers means relying on government payments to cover the shortfall, which can introduce administrative complexities and delays.
The cost of housing voucher tenants below open-market rates includes not only the immediate loss in rental revenue but also the potential for slower property appreciation. In an area with a strong housing market, like Advance, the difference between the FMR and ZORI could mean missing out on higher rents that reflect the true value of the property in today's market. However, the stability and security offered by the Section 8 program can attract long-term tenants who are less likely to default on rent payments, thus providing a steady cash flow despite the lower rate.
To summarize, the gap between the FMR and ZORI in ZIP 27006 is $907, or about 44% of the market rent. This makes the decision to accept housing vouchers a trade-off between stable, guaranteed rental income and the opportunity to charge market rates, which would be higher given the local economic conditions and median home values.
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.