Location: Surry 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 | $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 |
|---|---|---|---|---|
| 1BR | $770 | $124,246 | 0.62% | D |
| 2BR | $1,010 | $160,297 | 0.63% | D |
| 3BR | $1,210 | $234,008 | 0.52% | F |
| 4BR | $1,370 | $338,500 | 0.4% | F |
| 5BR | $1,589 | $403,011 | 0.39% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 27030, which encompasses Mount Airy, NC, and parts of Surry County, revolve around the SAFMR (Zip-code Specific Area Fair Market Rent) and the local market rent. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $880. This figure is specific to this ZIP code, reflecting the unique rental market conditions of the area.
In contrast, the local market rent, as indicated by ZORI (Zillow Observed Rent Index), is $1,200. This represents the average rent charged for comparable units in the area, without any subsidies. It's important to understand the difference between these two figures when considering the financial implications of renting to tenants with Section 8 vouchers.
A landlord who accepts a Section 8 voucher will receive payments based on the SAFMR rather than the market rent. The total payment to the landlord includes the tenant's portion of the rent and an allowance for utilities. Typically, the tenant is responsible for paying approximately 30% of their income toward rent. If we assume the tenant's income is such that they can afford 30% of the SAFMR, their portion would be roughly $264. The remaining amount, plus a utility allowance, would be paid by the housing authority.
To calculate the exact reimbursement, you need to know the tenant's income and the utility allowance. Assuming the utility allowance is around $200, the housing authority would pay the landlord $816 ($880 - $264) plus the utility allowance, totaling $1,016.
This means that for a two-bedroom unit in ZIP 27030, the typical reimbursement gap is the difference between the local market rent and the total reimbursement from the voucher program. In this case, the gap is $184 per month ($1,200 - $1,016).
Landlords should carefully consider this gap when deciding whether to accept Section 8 vouchers. While it ensures consistent and timely rent payments, it also means accepting a lower net rent compared to the local market rates. However, for some landlords, the stability and security of having a government-backed payment plan outweighs the economic shortfall.
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.