Section 8 Fair Market Rent (FMR) for ZIP 27127 - 2027

Investment Score for ZIP 27127

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	$1,150
1 Bedroom	$1,280
2 Bedrooms	$1,400
3 Bedrooms	$1,850
4 Bedrooms	$2,250
5 Bedrooms	$2,610
6 Bedrooms	$2,923
7 Bedrooms	$3,157
8 Bedrooms	$3,315

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	$1,280	$124,997	1.02%	B
2BR	$1,400	$169,140	0.83%	C
3BR	$1,850	$264,093	0.7%	D
4BR	$2,250	$316,491	0.71%	D
5BR	$2,610	$350,685	0.74%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 27127 (Winston-Salem, NC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 27127, as set by HUD for 2026, ranges from $1030 for a zero-bedroom unit to $1970 for a four-bedroom unit. For a two-bedroom unit, which is the most common size among renters, the FMR is $1270. This amount represents 24.6% of the median household income of $61,926, indicating that it is within a reasonable range for affordability based on local incomes. However, the actual rents in the area can be significantly higher. The Zillow median price for a two-bedroom home in ZIP 27127 is $170,873, which translates to a monthly rent of approximately $1424 when considering a typical mortgage payment. This is based on a 4.5% interest rate and a 30-year fixed mortgage, where the monthly payment would be around 1% of the property value. The price-to-FMR ratio of 11.2x suggests that the actual rental costs could be much higher than the FMR, potentially creating a challenge for Section 8 voucher holders who are limited to paying only up to the FMR. #### Affordability & Renter Profile ZIP code 27127 has a population of 41,443, with 34.3% of residents being renters. This indicates a substantial demand for rental properties, making it a significant market for landlords and investors. The occupancy rate of 91.9% further supports the idea that there is strong demand for housing in this area, suggesting a relatively tight market. Given the median household income of $61,926, the majority of renters likely fall into the lower-middle-income bracket. The FMR for a two-bedroom unit at $1270 represents a significant portion of their income, making it challenging for many to afford higher rents. This tight market dynamic means that landlords who offer units at or below the FMR may find themselves with a steady stream of tenants, but those who charge above the FMR may struggle to attract voucher holders. #### Investor Angle From an investor perspective, the ZIP code 27127 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1270, while the Zillow median price suggests a potential rent of $1424. This discrepancy means that landlords operating strictly within the FMR guidelines may face reduced cash flow compared to market rates. However, the high occupancy rate and substantial renter population indicate that there is a strong likelihood of finding tenants willing to pay the FMR. To determine the investment grade, we need to consider factors such as vacancy rates, maintenance costs, and property taxes. Given the occupancy rate of 91.9%, the risk of vacancy is low, which is favorable for investors. However, the tight market dynamics suggest that competition for tenants might be fierce, especially for those seeking to operate exclusively under the FMR. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units like one-bedroom or two-bedroom apartments. These units have FMRs of $1120 and $1270 respectively, which are closer to the Zillow median price of $170,873. This will help ensure that the units are affordable for voucher holders and provide a better chance of securing tenants. 2. **Consider Location and Amenities**: In a tight market, location and amenities can play a crucial role in attracting tenants. Investors should look for properties in desirable neighborhoods with access to public transportation, schools, and other essential services. Additionally, offering basic amenities such as laundry facilities and parking can make a property more attractive to voucher holders. 3. **Engage with Local Housing Authorities**: To maximize the chances of securing tenants with Section 8 vouchers, it is essential to establish a good relationship with local housing authorities. Understanding the voucher process and ensuring that your property meets all the necessary requirements can streamline the leasing process and reduce the time spent on vacancy. #### Bottom Line For Section 8-focused investors, ZIP code 27127 presents a mixed picture. While the high occupancy rate and substantial renter population indicate strong demand, the high price-to-FMR ratio suggests that cash flow may be tighter than in other markets. **Recommendation**: **Hold** Given the tight market conditions and the high demand for rental properties, holding onto existing properties or acquiring new ones in this ZIP code could be a prudent strategy. However, investors should be prepared to manage their expectations regarding cash flow and ensure that they can operate profitably within the FMR guidelines. Engaging with local housing authorities and focusing on smaller units can help mitigate some of these challenges.

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.