Location: Greensboro-High Point, NC | Metro: Greensboro-High Point, NC HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,160 |
| 1 Bedroom | $1,200 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,690 |
| 4 Bedrooms | $1,990 |
| 5 Bedrooms | $2,308 |
| 6 Bedrooms | $2,585 |
| 7 Bedrooms | $2,792 |
| 8 Bedrooms | $2,932 |
The investment risk assessment for ZIP 27261 in Unknown, NC, highlights several potential issues that could affect landlords and small-portfolio investors. Tenant turnover is a significant concern when comparing the market rent, which is currently unavailable, to the Fair Market Rent (FMR) of $1200 for FY 2024. This discrepancy can lead to frequent changes in occupancy, which may impact the stability of rental income.
Vacancy exposure is another critical risk factor. The days on market (DOM) data for the area is also not available, making it challenging to predict how long a property might remain vacant between tenants. This uncertainty can result in extended periods without rental income, increasing financial pressure on the landlord.
Deferred maintenance is a notable risk, especially considering the lack of specific data regarding the typical home value and median income in ZIP 27261. Without these figures, it's difficult to assess the likelihood that tenants will be able to afford necessary repairs and upkeep, potentially leading to higher maintenance costs for the landlord.
However, these risks must be weighed against the high concentration of renters in the area, indicated by the unavailable percentage of the renter share. High renter density generally translates into a robust demand for housing vouchers, which can stabilize rental income and reduce the impact of tenant turnover and vacancy exposure.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 27261 is moderate. While there are significant unknowns regarding market conditions, the potential for stable income due to high renter demand provides a counterbalance to the risks associated with tenant turnover and vacancy exposure.
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.