Section 8 Fair Market Rent (FMR) for ZIP 27107 - 2027

Investment Score for ZIP 27107

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	$960
1 Bedroom	$1,060
2 Bedrooms	$1,160
3 Bedrooms	$1,550
4 Bedrooms	$1,880
5 Bedrooms	$2,181
6 Bedrooms	$2,443
7 Bedrooms	$2,638
8 Bedrooms	$2,770

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,060	$104,458	1.01%	B
2BR	$1,160	$121,869	0.95%	C
3BR	$1,550	$254,944	0.61%	D
4BR	$1,880	$320,598	0.59%	F
5BR	$2,181	$380,825	0.57%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 27107 (Winston-Salem, NC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 27107 in Winston-Salem, NC, for 2026 is set at $1090 for a two-bedroom unit. This figure represents 21.5% of the median household income in the area, which is $60,729. However, the actual rent prices can be significantly higher. The Zillow median price for a two-bedroom rental unit in this ZIP code is $121,536, indicating that the average rent for a similar property is likely much higher than the FMR. For instance, if we assume a typical mortgage payment of around $600 per month for a two-bedroom property, the remaining $61,536 would be spread across other costs such as maintenance, utilities, and taxes, leading to a monthly rent of approximately $1013, which is already above the FMR. This discrepancy between FMR and actual rents places significant constraints on voucher holders. They may struggle to find units that accept their vouchers due to the high cost of living relative to the FMR. Additionally, landlords might be hesitant to accept vouchers because they could receive less than market rates, making it difficult for voucher holders to secure housing. #### Affordability & Renter Profile In ZIP code 27107, 27.2% of the population are renters, indicating a moderate rental market. With a median household income of $60,729, the affordability of housing is a concern for many residents. The occupancy rate stands at 92.9%, suggesting that there is a relatively tight market with limited vacancies. Given that the FMR for a two-bedroom unit is only 21.5% of the median income, it implies that the majority of residents have to spend a substantial portion of their income on housing. This makes the market particularly challenging for low-income families who rely on Section 8 vouchers. The high price-to-FMR ratio of 9.3x further underscores the unaffordable nature of the market, especially for those who are financially constrained. #### Investor Angle From an investor perspective, the ZIP code 27107 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1090, but the actual market rent is estimated to be around $1013, based on the Zillow median price. This suggests that investors could potentially achieve cash flow positive properties by renting at or slightly below market rates while still adhering to FMR guidelines. However, the high price-to-FMR ratio of 9.3x indicates that the upfront investment required to purchase a property in this ZIP code is quite substantial. Investors would need to carefully consider the long-term viability of their investments, given the tight rental market and the potential for limited availability of tenants willing to pay the higher market rates. The investment grade in this ZIP code would be considered moderate. While there is a demand for rental properties, the high cost of entry and the potential for lower-than-market rents due to voucher constraints make it a riskier investment compared to areas with lower ratios. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the constraints on voucher holders, smaller units like one-bedroom apartments or studios might be more attractive options. These units have a lower FMR of $960, which is closer to the median income percentage, making them more affordable for voucher recipients. This could help landlords attract and retain tenants who are using Section 8 vouchers. 2. **Consider Renovations**: Properties that require renovations might offer better value for investors. By purchasing a property below the Zillow median price and investing in improvements, an investor could potentially increase the rental value without exceeding the FMR. For example, a property purchased for $110,000 could be renovated to command a higher rent, say $1100, while still being within the FMR limit for a two-bedroom unit. 3. **Diversify Tenant Base**: To mitigate the risk of relying solely on voucher holders, landlords should consider diversifying their tenant base. This could include targeting working-class individuals who do not rely on vouchers but still seek affordable housing options. A mixed tenant base can provide more stable cash flows and reduce the dependency on government subsidies. #### Bottom Line For Section 8-focused investors, ZIP code 27107 presents a mixed picture. While there is a demand for affordable housing, the high price-to-FMR ratio and the tight rental market make it a challenging environment. Therefore, the recommendation is to **Hold** on existing investments and **Skip** new acquisitions unless they are smaller units or properties that can be renovated to fit within the FMR limits. The focus should be on maintaining a diversified tenant base to ensure financial stability. In summary, the dynamics of the rental market in ZIP 27107 suggest that while there are opportunities, they come with significant risks and constraints. Careful consideration and strategic planning are essential for successful investment in this area.

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.