Location: Rockingham County, 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 | $700 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $138,743 | 0.73% | D |
| 3BR | $1,240 | $217,682 | 0.57% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 27027 (Mayodan, NC) reveals some interesting insights into the potential returns for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a 2-bedroom apartment in Mayodan for FY 2024 is set at $860 per month, while the market rent based on Census ACS data is $785 per month. To derive the gross yield, we annualize these figures against the median home value of $162,012.
Using the FMR of $860, the annualized income would be $10,320 ($860 x 12 months). This translates to a gross yield of approximately 6.36% when compared to the median home value of $162,012. On the other hand, if we use the market rent figure of $785, the annualized income drops to $9,420 ($785 x 12 months), resulting in a gross yield of around 5.82%.
The implied gross-yield of 6.36% using the FMR is higher than the 5.82% derived from the market rent. However, the actual yield that investors might achieve can vary significantly depending on factors such as property management costs, vacancy rates, and maintenance expenses. Given that Mayodan has a renter density of 38.0%, it suggests that there is a moderate demand for rental properties, which could influence the likelihood of securing tenants at the FMR rate.
The N/A-day DOM (Days on Market) indicates that the data regarding how long properties typically remain unsold is unavailable. This could mean that either sales are infrequent or the market moves quickly, but without specific data, it's challenging to draw definitive conclusions about the liquidity of real estate investments in this area.
In conclusion, while the FMR provides a higher gross-yield, the market rent reflects more realistic expectations for landlords and investors. The choice between these two figures should be made considering the local rental market dynamics and the specific conditions of individual properties.
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.