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 | $1,220 |
| 1 Bedroom | $1,390 |
| 2 Bedrooms | $1,510 |
| 3 Bedrooms | $1,990 |
| 4 Bedrooms | $2,420 |
| 5 Bedrooms | $2,807 |
| 6 Bedrooms | $3,144 |
| 7 Bedrooms | $3,396 |
| 8 Bedrooms | $3,566 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,510 | $188,764 | 0.8% | D |
| 3BR | $1,990 | $265,640 | 0.75% | D |
| 4BR | $2,420 | $369,590 | 0.65% | D |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 27051, Walkertown, NC, reveals a detailed financial landscape for potential investments. To begin, let's annualize the 2-bedroom Fair Market Rent (FMR) set at $1120 per month for FY 2024, and compare it against the Census ACS-reported market rent of $1,146 per month. The median home value in this area stands at $267,394.
In the case of Section 8, the annualized income from a 2-bedroom unit would be $13,440 ($1120 x 12 months). When we divide this by the median home value, the implied gross yield is approximately 5%. This calculation is based on the assumption that the property is valued at $267,394 and rented out according to the FMR guidelines.
On the other hand, using the market rent figure of $1,146 per month, the annual income would be $13,752 ($1,146 x 12 months). Dividing this by the median home value gives an implied gross yield of roughly 5.1%, slightly higher than the Section 8 scenario.
Given the 18.9% renter density in Walkertown, NC, it is important to consider the likelihood of finding tenants willing to pay market rates versus those who rely on Section 8 vouchers. The N/A-day DOM (days on market) indicates a lack of available data regarding how long properties typically stay on the market before being rented, which could affect the speed of tenant acquisition and the overall vacancy rate.
The gross yields derived from both scenarios are quite similar, suggesting that the difference in rental income between Section 8 and market rates is minimal. However, the stability of income provided by Section 8 contracts, coupled with the lower renter density, makes the Section 8 scenario more realistic for many investors in this area. While market rents offer a marginally higher gross yield, the potential challenges in maintaining a steady stream of market-rate tenants must also be factored into investment decisions.
To summarize, the gross yield for a Section 8 property in Walkertown, NC, would be about 5%, whereas a market-rate property would offer a gross yield of around 5.1%. The slight edge in yield for market-rate properties does not necessarily outweigh the benefits of guaranteed income and reduced risk associated with Section 8 tenancy.
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.