Section 8 Fair Market Rent (FMR) for ZIP 27265 - 2027

Investment Score for ZIP 27265

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	$1,200
1 Bedroom	$1,260
2 Bedrooms	$1,380
3 Bedrooms	$1,790
4 Bedrooms	$2,090
5 Bedrooms	$2,424
6 Bedrooms	$2,715
7 Bedrooms	$2,932
8 Bedrooms	$3,079

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,260	$104,928	1.2%	A
2BR	$1,380	$193,483	0.71%	D
3BR	$1,790	$282,202	0.63%	D
4BR	$2,090	$396,308	0.53%	F
5BR	$2,424	$435,721	0.56%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 27265 (High Point, NC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 27265 is set by HUD for 2026 and ranges from $1330 for a zero-bedroom unit to $2300 for a four-bedroom unit. For a two-bedroom unit, the FMR is $1530, which represents 24.8% of the median household income in the area. This suggests that voucher holders have a relatively strict budget when it comes to housing costs. The actual rents in the market can vary, but based on the FMR, we can infer that many voucher holders will struggle to find units that fit within their budget, especially if landlords charge above the FMR rates. #### Affordability & Renter Profile ZIP code 27265 has a population of 48,798, with 30.6% of residents being renters. This indicates a significant rental market presence, but the occupancy rate of 95.2% suggests that there is little vacancy, making it a tight market for renters. The median household income of $73,981 implies that the majority of residents can afford higher rent levels, but those relying on Section 8 vouchers are limited to the FMR. Given the Zillow median price for a two-bedroom home is $193,270, the price-to-FMR ratio of 10.5x highlights that property values are significantly higher than the rent levels supported by FMR. This could indicate that landlords who rely solely on FMR might face challenges in covering mortgage payments and other expenses. #### Investor Angle For an investor looking to focus on Section 8 properties, the ZIP code 27265 presents a mixed scenario. The FMR for a two-bedroom unit is $1530, which is a critical figure since it aligns with the largest share of the rental market. However, the Zillow median price for a similar unit is $193,270, indicating that the cost of acquiring such a property is high relative to the rental income. To determine if this ZIP code is cash-flow positive, we need to consider additional factors such as operating costs, property taxes, and maintenance expenses. Assuming a conservative estimate of 10% annual operating costs and a 1.5% property tax rate, the total annual costs would be approximately $28,990.50 ($193,270 * 0.115). Dividing this by 12 months gives us a monthly cost of about $2,415.88. Since the FMR for a two-bedroom unit is only $1530, this would result in a negative cash flow of around $885 per month without considering mortgage payments. Therefore, it is unlikely that an investor focusing solely on FMR would achieve positive cash flow in this market. #### Investment Grade Given the high property values and the relatively low FMR compared to the median income, the investment grade for this ZIP code is likely to be lower for Section 8-focused investors. The tight rental market and high occupancy rate suggest strong demand, but the mismatch between property prices and FMR makes it challenging to generate positive cash flow. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Investors should consider smaller units like zero-bedroom or one-bedroom apartments, where the FMR is $1330 and $1400 respectively. These units might offer better cash flow opportunities due to lower acquisition costs relative to the FMR. 2. **Seek Government Subsidies**: Given the high property values and low FMR, investors might benefit from seeking government subsidies or grants that can help offset the initial purchase cost and ongoing expenses. This could make the investment more feasible. 3. **Consider Mixed-Income Developments**: Developing properties that cater to both Section 8 voucher holders and market-rate tenants could provide a balanced approach. By having a mix of units priced at FMR and above, investors can leverage higher rents from market-rate tenants to subsidize the lower rents from voucher holders. #### Bottom Line For Section 8-focused investors, the ZIP code 27265 (High Point, NC) is not recommended for buying properties due to the negative cash flow potential and the high price-to-FMR ratio. The recommendation is to **skip** this market unless you can secure additional subsidies or develop a mixed-income strategy. If you are already invested in the area, the recommendation is to **hold** your properties while exploring ways to improve cash flow through strategic management practices or diversifying tenant types.

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.