Location: Surry County, NC | Metro: Surry County, NC
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 | $770 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,370 |
| 5 Bedrooms | $1,589 |
| 6 Bedrooms | $1,780 |
| 7 Bedrooms | $1,922 |
| 8 Bedrooms | $2,018 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $148,927 | 0.68% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP 27024, located in Lowgap, NC, within the Surry County, NC metro area, reveals several key points for landlords and small-portfolio investors.
The first question to address is whether the rent math works. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $930. However, the current market rent, according to the Census ACS, stands at $662. This indicates that landlords might face challenges in setting rents at the FMR level, given the existing market conditions. The gap between the FMR and the actual market rent suggests a potential misalignment between government-set standards and the local rental market's realities.
Regarding the affordability of property acquisition, the median home value in ZIP 27024 is $214,233. Unfortunately, the data does not provide insights into the average days on market (DOM) or the percentage of homes that have required price cuts. Despite this lack of specificity, the median home value presents a moderate entry point for investment, especially considering the relatively low market rent.
Lastly, there is a consideration of tenant demand. With a total population of 2,387, the renter share is 14.9%. This implies that approximately 355 individuals are likely to be renters, which is a modest number for potential tenants. The limited demand for rental properties could make it challenging to find and retain tenants, particularly if they are seeking housing assistance through programs like Section 8.
In conclusion, while the median home value offers an affordable entry point for acquiring properties in ZIP 27024, the significant disparity between the FMR and the market rent poses a challenge for achieving profitability through rental income alone. Furthermore, the relatively low renter share in the population suggests a limited pool of potential tenants, which could affect occupancy rates. Landlords and investors should carefully evaluate these factors before making investment decisions in this 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.