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 | $850 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,080 | $228,203 | 0.47% | F |
| 3BR | $1,360 | $297,261 | 0.46% | F |
| 4BR | $1,610 | $448,030 | 0.36% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP code 27043, Pinnacle, North Carolina, might raise several valid concerns regarding the feasibility of investing in properties under the Section 8 program. Let's address these points directly.
Will FMR $880 (zip FY 2024) cover the mortgage on a $287,546 home?
The Fair Market Rent (FMR) for ZIP 27043 is set at $880 per month for fiscal year 2024. To determine if this amount can cover the mortgage on a $287,546 home, we must consider the prevailing interest rates and typical loan terms. Assuming a 30-year fixed-rate mortgage at an average rate of 4.5%, the monthly payment on such a home would be approximately $1,450. This means that the $880 FMR falls short of covering the mortgage payment by about $570 per month. An investor would need to consider additional income sources or subsidies to make up this difference.
Is there enough renter demand at 11.3%?
The rental vacancy rate for ZIP 27043 is 11.3%. While this figure is above the national average, it does not necessarily indicate a lack of demand. A higher vacancy rate could suggest that there are more rental properties available than needed, but it also implies that there is room for new investments without drastically lowering rents to attract tenants. However, the data does not provide a comprehensive picture of the local rental market dynamics, including tenant preferences and competition from other types of housing. It's advisable to conduct further research on local rental trends and demographics.
Will vouchers keep pace with $853 market rents?
The market rent in ZIP 27043 is currently $853 per month, slightly below the FMR of $880. The effectiveness of Section 8 vouchers depends on whether they adjust to match market rents. Historically, voucher payments have been designed to cover the cost of modest housing in the area. Given the close alignment between the FMR and market rent, it is reasonable to assume that vouchers will likely keep pace with the $853 market rent. However, future adjustments to voucher amounts are subject to federal funding and policy changes, which could impact their ability to cover rising market rents.
In conclusion, while the data provides a snapshot of the financial landscape in ZIP 27043, it highlights both challenges and opportunities. Investors should carefully evaluate their risk tolerance and seek additional local insights before committing to Section 8 investments in this area.
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.