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 | $950 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,880 |
| 5 Bedrooms | $2,181 |
| 6 Bedrooms | $2,443 |
| 7 Bedrooms | $2,638 |
| 8 Bedrooms | $2,770 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,170 | $216,311 | 0.54% | F |
| 3BR | $1,540 | $272,159 | 0.57% | F |
| 4BR | $1,880 | $365,813 | 0.51% | F |
U.S. Census Bureau data (2024)
In ZIP code 27021, which is located in King, North Carolina, in Stokes County, the economics of Section 8 housing can be quite favorable for landlords when understood correctly. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2024 is set at $1030. This figure represents the maximum amount that the Housing Choice Voucher Program will reimburse landlords for rent.
The local market rent, according to the Census ACS, is currently $851 for a similar two-bedroom unit. This means that landlords participating in the Section 8 program can potentially charge above the local market rate without risking vacancy due to the voucher support.
A voucher payment consists of two parts: the tenant's contribution and the utility allowance. The tenant's portion is typically 30% of their income, which varies depending on the individual's financial situation. For simplicity, let’s assume a tenant's monthly income is $1,500; their contribution would be around $450.
The utility allowance is an additional amount that covers the cost of utilities such as electricity, gas, water, and sewage. The exact amount depends on the number of bedrooms and the specific region. In ZIP 27021, the utility allowance for a two-bedroom unit is generally around $180.
To calculate the total reimbursement a landlord would receive, you add the tenant's contribution and the utility allowance to the voucher payment. If we use the example figures, the landlord would receive $450 (tenant contribution) + $180 (utility allowance) = $630 in addition to the voucher payment. Therefore, the landlord could expect a total reimbursement of $1030 (voucher) + $630 (tenant contribution + utility allowance) = $1660.
However, since the local market rent is $851, landlords who participate in the Section 8 program and rent their units at the market rate would find themselves with a significant surplus. The surplus is calculated as follows: $1660 (total reimbursement) - $851 (local market rent) = $809. This means that landlords could potentially pocket an extra $809 per month above the market rate, making Section 8 participation a lucrative option in ZIP 27021.
Note that these calculations are based on the provided figures and hypothetical scenarios. Actual amounts can vary based on the tenant's income and other factors, but the principle remains the same: landlords in ZIP 27021 can benefit financially from the Section 8 program while ensuring stable occupancy.
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.