Location: Davidson County, 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 | $1,200 |
| 1 Bedroom | $1,330 |
| 2 Bedrooms | $1,450 |
| 3 Bedrooms | $1,930 |
| 4 Bedrooms | $2,350 |
| 5 Bedrooms | $2,726 |
| 6 Bedrooms | $3,053 |
| 7 Bedrooms | $3,297 |
| 8 Bedrooms | $3,462 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,450 | $229,753 | 0.63% | D |
| 3BR | $1,930 | $346,610 | 0.56% | F |
| 4BR | $2,350 | $484,234 | 0.49% | F |
| 5BR | $2,726 | $594,182 | 0.46% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 27012 (Clemmons, NC) on the axes of yield and stability reveals it as a moderate cash flow opportunity with notable stability concerns. The Fair Market Rent (FMR) for ZIP 27012 in fiscal year 2024 is set at $1,130, while the market rent stands at $1,812. This indicates a potential rental income that exceeds the FMR, suggesting a decent yield for landlords who can secure tenants paying above the FMR.
However, the median home value of $388,270 provides a context for the investment size, which is substantial. Coupled with the median household income of $96,250, the gap between the market rent and household income highlights a significant challenge in attracting tenants who can afford the higher rents. The 19.6% rental rate further underscores this issue, indicating a relatively low demand for rental properties compared to owner-occupied homes.
The average days on market (DOM) for properties is 30 days, which is a reasonable timeframe but could be shorter if the rental market were more robust. This figure suggests that while properties do sell, they may not do so quickly enough to ensure continuous cash flow without periods of vacancy.
In summary, ZIP 27012 offers a moderate yield due to the discrepancy between the FMR and market rent. However, its stability is compromised by the low rental rate and the potential difficulty in finding tenants willing to pay the higher market rents given the median income levels. This makes it neither a high-yield/low-stability flip-style market nor a steady-cashflow zone, but rather an area that requires careful tenant selection and possibly some price adjustment to balance yield and stability.
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.