Location: Davidson County, 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 | $920 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,740 |
| 5 Bedrooms | $2,018 |
| 6 Bedrooms | $2,260 |
| 7 Bedrooms | $2,441 |
| 8 Bedrooms | $2,563 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $960 | $185,214 | 0.52% | F |
| 2BR | $1,040 | $179,905 | 0.58% | F |
| 3BR | $1,440 | $260,558 | 0.55% | F |
| 4BR | $1,740 | $343,975 | 0.51% | F |
| 5BR | $2,018 | $393,612 | 0.51% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 27292, located in Lexington, North Carolina, within Davidson County, can be straightforward when understood correctly. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2024 is set at $950. This is the maximum amount that the Housing Choice Voucher program will pay toward the rent for a two-bedroom unit in this area.
Comparatively, the local market rent for a similar two-bedroom unit, as indicated by ZORI (Zillow Observed Rent Index), stands at $1,212. This represents the average rent that landlords might charge tenants without vouchers, based on current market conditions.
A landlord participating in the Section 8 program should understand how the total payment is structured. The voucher payment consists of two parts: the subsidy from the government and the tenant's portion of the rent. Typically, the tenant is expected to contribute 30% of their adjusted income toward the rent. For simplicity, let's assume a tenant has an adjusted income of $1,000 per month. In this case, the tenant would pay $300 toward the rent.
The remaining portion of the rent is covered by the government through the voucher. Therefore, if the SAFMR is $950, the government would pay the landlord the difference between the tenant’s contribution and the SAFMR. In our example, the government would pay $650 ($950 - $300).
In addition to the base rent, there are utility allowances that can be factored into the total reimbursement. These allowances vary but generally cover the cost of utilities such as electricity, gas, water, and sewer. For ZIP 27292, the utility allowance for a two-bedroom unit is typically around $200. This means the landlord could receive an additional $200 per month to help cover these costs.
Combining the government subsidy of $650 with the utility allowance of $200, the landlord would receive a total of $850 per month from the voucher program. This leaves a gap of $362 between the local market rent of $1,212 and the voucher reimbursement of $850. Landlords must decide whether they are willing to accept this lower reimbursement or seek other solutions to close the gap.
In summary, landlords in ZIP 27292 can expect a reimbursement of $850 per month for a two-bedroom unit, which includes both the rent subsidy and utility allowance. This results in a reimbursement gap of $362 compared to the local market rent, making it important for landlords to carefully consider the financial implications before accepting a Section 8 tenant.
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.