Location: Winston-Salem, NC | Metro: Winston-Salem, NC HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,120 |
| 1 Bedroom | $1,270 |
| 2 Bedrooms | $1,380 |
| 3 Bedrooms | $1,820 |
| 4 Bedrooms | $2,210 |
| 5 Bedrooms | $2,564 |
| 6 Bedrooms | $2,872 |
| 7 Bedrooms | $3,102 |
| 8 Bedrooms | $3,257 |
The potential pitfalls of investing in ZIP 27115 under the Section 8 program are significant. Firstly, the tenant turnover rate could be problematic if market rents are not aligned with the Fair Market Rent (FMR) of $1140 for fiscal year 2024. High turnover can lead to increased costs for landlords, including cleaning, repairs, and advertising new tenants. Secondly, the vacancy exposure is a concern given the lack of data on the average days on market (DOM), which indicates how long it might take to find a new tenant once a unit becomes vacant. This uncertainty can result in prolonged periods without rental income, impacting cash flow negatively. Lastly, deferred maintenance is a critical issue, especially when the typical home value and median income figures are unavailable. Without these key metrics, it's challenging to assess the financial health of local homeowners and their ability to maintain properties, leading to potential costly repairs and upkeep.
However, these risks must be weighed against the high renter share in the area. Although the exact percentage is not specified, a high proportion of renters typically translates into higher demand for housing vouchers. This demand can help stabilize occupancy rates and ensure that units are filled promptly, reducing the risk of extended vacancies. Additionally, the presence of many renters can create a robust market for Section 8 properties, making it easier to find eligible tenants who can provide consistent rental income.
In conclusion, the investment in ZIP 27115 for a first-time Section 8 landlord presents a moderate risk. While there are notable uncertainties regarding market conditions and property values, the high demand for rental housing offers a counterbalance that can mitigate some of these risks.
Data Sources: FMR data from HUD (2027).
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.