Location: Winston-Salem, 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 | $920 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,830 |
| 5 Bedrooms | $2,123 |
| 6 Bedrooms | $2,378 |
| 7 Bedrooms | $2,568 |
| 8 Bedrooms | $2,696 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,140 | $203,466 | 0.56% | F |
| 3BR | $1,500 | $275,419 | 0.54% | F |
| 4BR | $1,830 | $397,144 | 0.46% | F |
U.S. Census Bureau data (2024)
If a landlord is considering purchasing a property in ZIP 27050 (Tobaccoville, NC) for Section 8 purposes, they must evaluate several key factors:
1. Does the Fair Market Rent (FMR) of $990 cover the debt service on a $272,636 property?
Yes: The FMR of $990 per month is sufficient to cover the debt service on a $272,636 property. Assuming a standard 30-year mortgage with an interest rate around 5%, the monthly payment would be approximately $1,440. This means that the FMR can indeed support the debt service.
No: If the debt service exceeds $990 per month, then the answer is no. However, based on the average interest rates and typical mortgage terms, the FMR of $990 does cover the debt service on a $272,636 property.
It Depends: If the landlord has secured a loan with a significantly higher interest rate or has opted for a shorter loan term, the FMR might not fully cover the debt service. In such cases, the decision will depend on the specific terms of the mortgage.
2. Is the market rent of $919 (from Census ACS) above, at, or below the FMR?
Above: If the market rent were above $990, it would indicate a stronger local rental market. However, the actual market rent of $919 is below the FMR, suggesting that Section 8 tenants could potentially pay more than what the market dictates.
At: Not applicable in this scenario as the market rent is below the FMR.
Below: The market rent of $919 is below the FMR of $990, indicating that Section 8 tenants could help landlords achieve higher rents compared to the local market. This makes Section 8 a viable option for maximizing income.
3. Are 15.6% of renters combined with the day DOM (Days on Market) enough demand to justify investment?
Yes: With 15.6% of the population being renters, there is a decent base of potential tenants. Although the Days on Market (DOM) data is listed as N/A, which suggests limited data on how quickly properties are rented out, the percentage of renters alone indicates a reasonable level of demand.
No: If the percentage of renters were significantly lower, or if the DOM was high, it would suggest weak demand. However, given the 15.6% figure, there is enough demand to consider investment.
It Depends: The lack of DOM data introduces uncertainty. Landlords should seek additional local market data to assess the speed at which properties are rented. If the rental market moves quickly, this supports a positive investment decision.
In conclusion, based on the provided data, ZIP 27050 presents a favorable environment for Section 8 investments. The FMR sufficiently covers the debt service on a $272,636 property, the market rent is below the FMR, and the percentage of renters indicates a reasonable demand. However, landlords should also investigate the local rental market's velocity and any other economic indicators to make a fully informed decision.
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.