Location: Winston-Salem, NC | Metro: Rockingham County, 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 | $730 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $165,629 | 0.61% | D |
| 3BR | $1,250 | $264,943 | 0.47% | F |
| 4BR | $1,570 | $339,912 | 0.46% | F |
U.S. Census Bureau data (2024)
The Section 8 Housing Choice Voucher program's financial dynamics in ZIP code 27025, centered around Madison, North Carolina, present a clear opportunity for landlords and small-portfolio investors. The Fair Market Rent (FMR) for ZIP 27025 in fiscal year 2024 is set at $880, while the average market rent based on Census ACS data stands at $725. This represents a gap of $155, or approximately 21.38%, where the FMR exceeds the market rent.
This scenario makes ZIP 27025 a prime location for a yield play. Landlords who accept Section 8 vouchers can benefit from receiving a higher rent compared to the open-market rate. Given that only 21.5% of residents in Madison are renters, the competition for rental properties among voucher holders can be fierce, providing an advantage to those landlords willing to participate in the program. Additionally, the median home value in Madison is $223,356, indicating a relatively stable local economy. However, the median income of $56,682 suggests that many residents may struggle to afford homeownership, further supporting the demand for affordable rentals.
The higher FMR rate ensures that landlords receive a more consistent and reliable income stream. Unlike the fluctuating nature of market rents, which can vary significantly due to economic conditions and tenant preferences, the FMR provides a fixed benchmark. This stability is particularly beneficial for small-portfolio investors looking to diversify their income sources without the risk associated with market volatility.
To summarize, the $155 gap between the FMR and the market rent in ZIP 27025, coupled with the local context of Madison, NC, makes this area attractive for landlords and investors who are considering accepting Section 8 vouchers. The yield potential, combined with the economic realities of the region, presents a compelling case for participation in the program.
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.