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 | $1,110 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,370 |
| 3 Bedrooms | $1,800 |
| 4 Bedrooms | $2,200 |
| 5 Bedrooms | $2,552 |
| 6 Bedrooms | $2,858 |
| 7 Bedrooms | $3,087 |
| 8 Bedrooms | $3,241 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,260 | $212,251 | 0.59% | F |
| 2BR | $1,370 | $176,624 | 0.78% | D |
| 3BR | $1,800 | $226,434 | 0.79% | D |
| 4BR | $2,200 | $305,006 | 0.72% | D |
| 5BR | $2,552 | $411,739 | 0.62% | D |
U.S. Census Bureau data (2024)
In Winston-Salem, NC, specifically ZIP 27101, the real estate market presents a nuanced landscape that balances both opportunities and challenges for landlords and small-portfolio investors. The median home value stands at $226,935, indicating a relatively affordable market compared to many other regions. However, the fact that only 0.3% of listings have been reduced suggests a strong seller's market where prices are holding firm. This resilience in pricing, combined with a 30-day median days on market (DOM), signals that homes are selling quickly without significant price adjustments. These factors imply that landlords can maintain or even slightly increase rental rates due to the limited supply of housing.
The Federal Market Rent (FMR) for ZIP 27101 in fiscal year 2024 is set at $1,050, which contrasts sharply with the current Zillow Observed Rent Index (ZORI) of $1,514. This discrepancy highlights an opportunity for landlords who can offer properties below the market rate but still above the subsidized rent level. It also indicates that there is a segment of the rental market that is underserved by the federal guidelines, creating a space for landlords to capture higher rents if they can provide quality accommodations.
Long-term investors should consider the implications of these figures on their portfolio's potential appreciation. The combination of a stable median home value and a low percentage of price reductions suggests that the local real estate market is steady and unlikely to experience significant fluctuations. While the appreciation thesis in ZIP 27101 may not be robust, it is anchored in the consistent demand for both homeownership and rental properties. Landlords can expect modest growth in property values, contingent upon broader economic conditions and localized improvements such as infrastructure developments or changes in zoning laws.
The setup in ZIP 27101, therefore, supports a strategy of maintaining competitive rental rates while keeping an eye on the broader economic indicators. Investors should focus on the balance between affordability and quality to attract tenants and ensure steady occupancy rates. With a quick DOM, landlords can also expect to see faster turnover in their portfolios, allowing them to adjust their strategies and pricing more rapidly to changing market conditions.
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.