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 economics of Section 8 housing in ZIP code 27199, located in Winston-Salem County, North Carolina, are straightforward when you understand the SAFMR (Small Area Fair Market Rent) and how it interacts with tenant contributions and utility allowances. For a two-bedroom apartment, the SAFMR for fiscal year 2024 is set at $1140. This rate is specifically tailored for this ZIP code, ensuring it reflects the local rental market conditions accurately.
A key aspect of Section 8 is that tenants contribute a portion of their income towards rent. Typically, this contribution is around 30% of their adjusted monthly income. The government then covers the difference between the tenant's contribution and the SAFMR. However, there are additional considerations such as utility allowances which can vary but generally range from $300 to $500 per month depending on the size of the household and the number of bedrooms in the unit.
To illustrate, if a tenant's adjusted monthly income is $1500, they would contribute approximately $450 towards rent ($1500 * 30%). With an average utility allowance of $400, the total amount covered by the voucher would be $850 ($450 + $400). Therefore, the landlord would receive $850 from the voucher program and the tenant would pay the remaining $290 out of their $1140 SAFMR allocation, leaving a reimbursement gap of $290 per month.
This reimbursement gap is a critical factor for landlords and small-portfolio investors to consider when deciding whether to participate in the Section 8 program. It represents the shortfall between the SAFMR and the actual payment received from the voucher plus tenant contribution. In ZIP 27199, given the SAFMR of $1140 and the typical reimbursement scenario described, landlords should expect a consistent reimbursement gap of about $290 for a two-bedroom unit.
In summary, landlords in ZIP 27199 who accept Section 8 vouchers for a two-bedroom apartment will receive a total of $850 per month from the combination of the tenant's contribution and the utility allowance, resulting in a reimbursement gap of $290 against the SAFMR of $1140. This economic framework provides a clear picture of the financial realities involved in participating in the Section 8 program in this specific ZIP code.
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.