Section 8 Fair Market Rent (FMR) for ZIP 27105 - 2027

Investment Score for ZIP 27105

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$990
1 Bedroom	$1,120
2 Bedrooms	$1,220
3 Bedrooms	$1,610
4 Bedrooms	$1,960
5 Bedrooms	$2,274
6 Bedrooms	$2,547
7 Bedrooms	$2,751
8 Bedrooms	$2,889

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,120	$102,453	1.09%	B
2BR	$1,220	$116,834	1.04%	B
3BR	$1,610	$191,342	0.84%	C
4BR	$1,960	$225,918	0.87%	C
5BR	$2,274	$205,774	1.11%	B

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 27105 (Winston-Salem, NC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 27105 in Winston-Salem, NC, for 2026 indicate that a two-bedroom unit should cost around $1100 per month. However, the actual rent prices in the area can be significantly higher. According to Zillow, the median price for a two-bedroom property is $116,301, which translates to a monthly rental cost of approximately $969 when considering a typical cap rate of 5%. This means that the actual rent prices are slightly above the FMR, but not drastically so. The price-to-FMR ratio for a two-bedroom unit is 8.8x, indicating that the purchase price is quite high relative to the rental income it generates. For voucher holders, the FMR serves as a benchmark for what they can afford. In ZIP 27105, a two-bedroom unit at $1100 represents 29.9% of the median household income of $44,080. This suggests that voucher holders are likely to find units within their budget, but they will still face challenges due to the relatively high rent-to-income ratio. Additionally, landlords may be hesitant to accept vouchers if they perceive them as less reliable or more bureaucratic compared to market-rate tenants. #### Affordability & Renter Profile ZIP code 27105 has a population of 40,678, with 46.4% of residents being renters. This indicates a significant demand for rental properties in the area. The occupancy rate stands at 84.0%, suggesting that the market is fairly tight, with most available units being occupied. Given the median household income of $44,080, affordability is a key concern for many residents. The fact that a two-bedroom unit costs 29.9% of the median income highlights the financial strain on renters, especially those relying on Section 8 vouchers. The tight market conditions mean that there is a limited supply of rental units, which could drive up rent prices further. This situation benefits landlords who can charge closer to the market rates, but it poses a challenge for low-income households seeking affordable housing. The high proportion of renters also implies that the housing market is heavily dependent on rental demand, making it crucial for landlords to understand the needs and preferences of their tenant base. #### Investor Angle From an investor perspective, the ZIP code 27105 offers a mixed picture. While the median household income is relatively low, the high rent-to-income ratio and the tight market suggest that rental properties can command reasonable rents. However, the price-to-FMR ratio of 8.8x indicates that the purchase price of properties is significantly higher than the rental income they generate. This makes it challenging for investors to achieve positive cash flow purely based on rental income. To determine whether this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with owning and renting out a property. These include mortgage payments, property taxes, insurance, maintenance, and other operational costs. Assuming a conservative estimate of 50% of the FMR going towards these expenses, a two-bedroom unit at $1100 would have net rental income of about $550 per month. This amount is likely insufficient to cover the mortgage payment on a property purchased at the median price of $116,301, given the high price-to-FMR ratio. In terms of investment grade, the high purchase price relative to rental income suggests that this ZIP code is not ideal for investors looking to maximize cash flow. However, it could still be considered for investors who are willing to hold properties long-term and benefit from potential appreciation in property values over time. #### Specific Actionable Insights 1. **Target Properties Below Median Price**: Investors should focus on acquiring properties below the median price of $116,301. For instance, purchasing a two-bedroom unit for $90,000 would result in a price-to-FMR ratio of approximately 7.3x, which is more manageable and could potentially yield positive cash flow. 2. **Consider Short-Term Rentals**: Given the high price-to-FMR ratio, investors might want to explore short-term rental options such as Airbnb. This could help offset the higher purchase costs and provide additional income streams. However, this strategy requires careful consideration of local regulations and market demand for short-term rentals. 3. **Develop Relationships with Local Landlords**: Building relationships with local landlords can help investors understand the nuances of the rental market, including the acceptance rate of Section 8 vouchers. This knowledge can be invaluable in identifying opportunities where voucher holders can secure housing without facing significant barriers. #### Bottom Line For Section 8-focused investors, ZIP code 27105 presents a challenging environment due to the high price-to-FMR ratio and the tight market conditions. The recommendation would be to **skip** this ZIP code unless investors are willing to take a long-term approach and can afford to absorb the initial losses. If investors decide to proceed, they should carefully select properties below the median price and consider alternative income strategies like short-term rentals to improve their financial position.

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.