Location: Davidson County, NC | Metro: Greensboro-High Point, NC HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,180 |
| 1 Bedroom | $1,330 |
| 2 Bedrooms | $1,450 |
| 3 Bedrooms | $1,910 |
| 4 Bedrooms | $2,320 |
| 5 Bedrooms | $2,691 |
| 6 Bedrooms | $3,014 |
| 7 Bedrooms | $3,255 |
| 8 Bedrooms | $3,418 |
U.S. Census Bureau data (2024)
The classification of ZIP 27284 (Kernersville, NC) on the axes of yield and stability reveals a market that leans towards providing steady cash flow rather than high-yield/low-stability opportunities.
Yield: The Fair Market Rent (FMR) for ZIP 27284 in fiscal year 2024 is $1,170, which is notably lower than the market rent of $1,724. This suggests that properties participating in the Section 8 program will have a rental income that is approximately $554 less per month compared to market rates. Given the median home value of $322,970, the gap between FMR and market rent indicates that the yield from Section 8 properties is modest but predictable.
Stability: Kernersville has a relatively stable rental market with 26.9% of residents being renters. The days on market (DOM) average is 27 days, which is a healthy indicator of demand for rental properties. Additionally, the median household income of $82,461 provides a strong financial foundation for tenants, reducing the risk of default and increasing the likelihood of timely rent payments.
To summarize, ZIP 27284 is best characterized as a steady-cashflow zone. While it does not offer the high yields typically associated with flipping or other speculative investments, the combination of a moderate rental gap, a significant percentage of renters, a reasonable DOM period, and a solid median income supports a stable and consistent return on investment. Landlords and small-portfolio investors should expect a reliable, though not exceptionally high, rate of return from Section 8 properties in this area.
Data Sources: FMR data from HUD (2027). 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.