Location: Winston-Salem, NC | Metro: Greensboro-High Point, NC HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,680 |
| 1 Bedroom | $1,750 |
| 2 Bedrooms | $1,910 |
| 3 Bedrooms | $2,470 |
| 4 Bedrooms | $2,900 |
| 5 Bedrooms | $3,364 |
| 6 Bedrooms | $3,768 |
| 7 Bedrooms | $4,069 |
| 8 Bedrooms | $4,272 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,910 | $274,967 | 0.69% | D |
| 3BR | $2,470 | $355,935 | 0.69% | D |
| 4BR | $2,900 | $488,159 | 0.59% | F |
U.S. Census Bureau data (2024)
The ZIP code 27235, located in Colfax, North Carolina, has a population of 5,237 residents. Among these, 26.5% are renters, indicating a modest rental market presence. The median household income in this area is $101,173, which provides a benchmark for assessing the financial capabilities of potential tenants.
To understand the dynamics of the rental market, it's essential to consider the relationship between local incomes and rental costs. The typical market rent in this area is $2,079 per month, which represents approximately 25% of the median household income. This percentage suggests that while rent is a significant portion of income, it remains manageable for most households given the relatively high median income level.
Comparatively, the Fair Market Rent (FMR) for FY 2024 is set at $1,270, indicating that the actual market rent is substantially higher than the FMR. This difference highlights the disparity between what the government considers fair and the actual rents charged in the market. Landlords should be aware that tenants relying on Section 8 vouchers will have a lower budget for rent, aligning more closely with the FMR figure.
In this context, landlords can expect a tenant pool that includes individuals and families who may need assistance with housing due to the high market rent relative to the FMR. A significant portion of these tenants will likely require Section 8 vouchers to cover their rent, making the ZIP code attractive for those seeking subsidized housing options.
The demand for Section 8 vouchers is likely to be robust, given the higher market rent compared to the FMR. However, the overall number of renters is not exceptionally large, suggesting that while there is demand for affordable housing, it may not be as extensive as in areas with a larger rental population.
To summarize, landlords in ZIP code 27235 should anticipate a tenant base that includes many voucher holders. These tenants will typically aim for properties where the rent is closer to the FMR of $1,270 rather than the higher market rate of $2,079. Given the income levels, landlords should also be prepared to offer competitive pricing to attract and retain tenants, balancing between market rates and affordability.
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.