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 | $1,310 |
| 1 Bedroom | $1,490 |
| 2 Bedrooms | $1,620 |
| 3 Bedrooms | $2,130 |
| 4 Bedrooms | $2,600 |
| 5 Bedrooms | $3,016 |
| 6 Bedrooms | $3,378 |
| 7 Bedrooms | $3,648 |
| 8 Bedrooms | $3,830 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,620 | $239,404 | 0.68% | D |
| 3BR | $2,130 | $309,456 | 0.69% | D |
| 4BR | $2,600 | $571,675 | 0.45% | F |
U.S. Census Bureau data (2024)
The Section 8 housing analysis for ZIP code 27009, located in Belews Creek, NC, reveals a significant opportunity for landlords and small-portfolio investors. The Fair Market Rent (FMR) for the area, set at $1340 for fiscal year 2024, stands in stark contrast to the current market rent which is not available due to limited data points. This discrepancy makes it essential to understand the implications for rental properties in this region.
In Belews Creek, NC, only 2.2% of residents are renters, indicating a low density of rental properties relative to homeownership. The median home value in the area is $320,015, while the median household income is $76,469. Given these figures, the FMR of $1340 represents a substantial discount compared to what might be expected in a more densely populated rental market. However, the lack of specific market rent data means that we must rely on the FMR to guide our investment decisions.
The FMR is used to determine the payment standards for Section 8 vouchers. If the FMR exceeds the actual market rent, properties participating in the Section 8 program can attract tenants who are willing to pay the difference between the voucher amount and the actual rent, thus increasing the landlord's yield. In Belews Creek, where rental demand is low, the potential for higher yields through Section 8 tenants is particularly attractive. Landlords can benefit from a guaranteed portion of the rent through the voucher program, while also potentially charging additional amounts above the FMR if the local market allows.
Conversely, if the FMR is lower than the market rent, landlords must consider the cost of accepting housing voucher tenants at rates below what they could charge in the open market. This scenario would reduce the overall revenue per unit but still provides a stable source of income. In Belews Creek, where the market rent data is not available, landlords should be cautious about overestimating their potential earnings outside of the Section 8 program.
To quantify the gap, let us assume the market rent is slightly higher than the FMR, say $1400, based on typical variations in rural areas. The gap between the FMR and this assumed market rent is $60, or approximately 4.3% below the market rate. This percentage reflects the potential discount landlords might face when choosing to accept Section 8 tenants. However, given the low rental density and high median home values, the stability provided by the Section 8 program can outweigh the financial sacrifice for many landlords.
Landlords in Belews Creek should carefully evaluate their property management costs and consider the benefits of long-term, stable tenancy against the potential for short-term, higher-yield open-market rentals. The decision to participate in the Section 8 program should be informed by a thorough understanding of local rental dynamics and the broader economic context of the area.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.