Section 8 Fair Market Rent (FMR) for ZIP 27106 - 2027

Investment Score for ZIP 27106

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	$1,220
1 Bedroom	$1,380
2 Bedrooms	$1,500
3 Bedrooms	$1,980
4 Bedrooms	$2,400
5 Bedrooms	$2,784
6 Bedrooms	$3,118
7 Bedrooms	$3,367
8 Bedrooms	$3,535

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
2BR	$1,500	$169,854	0.88%	C
3BR	$1,980	$298,060	0.66%	D
4BR	$2,400	$484,586	0.5%	F
5BR	$2,784	$814,620	0.34%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 27106 (Winston-Salem, NC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 27106 in Winston-Salem, NC, indicate that the rent for a two-bedroom apartment is set at $1360 per month. This figure represents 23.8% of the median household income in the area, which stands at $68,568. However, the actual rental market shows a significant disparity between the FMR and the median rent for a two-bedroom unit on Zillow, which is $171,502. The price-to-FMR ratio is approximately 10.5 times, suggesting that the actual median home value is much higher than the FMR. This means that tenants using Section 8 vouchers face substantial constraints when trying to find housing within the FMR limits. For example, a tenant with a voucher for a two-bedroom unit would have to find a landlord willing to accept $1360 per month, which is far below the median home value in the area. This could limit their options to less desirable neighborhoods or properties that are older and in need of repair. #### Affordability & Renter Profile With 44.0% of the population renting, there is a significant demand for rental properties in ZIP 27106. The occupancy rate of 88.7% indicates that the market is relatively tight, with most available units being occupied. Given that the median household income is $68,568, the affordability of housing becomes a critical issue for many residents. The FMR for a two-bedroom unit at $1360 is only 23.8% of the median income, which suggests that housing is generally affordable for those who qualify for Section 8 assistance. However, the high price-to-FMR ratio implies that the overall cost of housing is significantly higher than what is considered fair market rent by HUD standards. The typical renter in this ZIP code is likely to be someone who is either earning close to the median income or is receiving some form of rental assistance. The high percentage of renters and the tight occupancy rate suggest that there is a strong demand for rental properties, but the supply may not meet the needs of all potential tenants, especially those relying on Section 8 vouchers. #### Investor Angle From an investor's perspective, the ZIP code 27106 presents a mixed picture. The FMR for a two-bedroom unit is $1360, which is lower than the actual median rent. However, given the high price-to-FMR ratio, it is clear that the market value of homes is much higher than the FMR. This means that landlords who are willing to participate in the Section 8 program will likely see lower returns compared to the overall market value of their properties. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with owning and managing a rental property. These include mortgage payments, property taxes, insurance, maintenance, and other operational costs. If a landlord can cover these expenses with the FMR rent of $1360, then the property would be cash-flow positive. However, given the high median home value, it is likely that mortgage payments alone would exceed this amount, making it challenging to achieve positive cash flow without additional subsidies or a willingness to accept lower returns. In terms of investment grade, the high price-to-FMR ratio and the tight occupancy rate suggest that the risk level is moderate to high. Investors should carefully evaluate the financials of any potential property to ensure that they can manage the risks associated with lower rental income compared to market rates. #### Specific Actionable Insights 1. **Focus on Lower-Rent Properties**: Investors should focus on acquiring properties that are closer to the FMR levels. For instance, a one-bedroom unit with an FMR of $1190 might be more feasible for achieving positive cash flow. Additionally, properties in less desirable areas or those that require renovation could be more attractive to Section 8 voucher holders, potentially allowing for higher rents while still meeting the FMR requirements. 2. **Consider Multi-Family Units**: Since the FMR for larger units like three-bedroom ($1770) and four-bedroom ($2100) apartments is higher, investing in multi-family units could provide better cash flow opportunities. However, the challenge remains in finding properties where the total rent collected from multiple units can cover the overall expenses. 3. **Engage with Local Real Estate Agencies**: Working closely with local real estate agencies can help identify properties that are more likely to attract Section 8 tenants. These agencies often have a good understanding of the local rental market and can provide valuable insights into which neighborhoods and types of properties are more suitable for Section 8 tenants. #### Bottom Line For investors focused on Section 8 properties, the ZIP code 27106 presents a challenging environment due to the high price-to-FMR ratio and the tight rental market. While there is a significant demand for rental properties, the actual median home values are substantially higher than the FMR, making it difficult to achieve positive cash flow without additional subsidies or a willingness to accept lower returns. Given these factors, the recommendation for Section 8-focused investors is to **Hold**. They should carefully evaluate potential investments and consider focusing on lower-rent properties or multi-family units to maximize their chances of achieving positive cash flow. Engaging with local real estate agencies can also provide valuable insights into the best strategies for navigating this market.

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.