Section 8 Fair Market Rent (FMR) for ZIP 27294 - 2027
Location: Davidson County, NC | Metro: Davidson County, NC HUD Metro FMR Area
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $960 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,510 |
| 4 Bedrooms | $1,820 |
| 5 Bedrooms | $2,111 |
| 6 Bedrooms | $2,364 |
| 7 Bedrooms | $2,553 |
| 8 Bedrooms | $2,681 |
To determine if you should buy in ZIP code 27294 (Unknown, NC) for Section 8 investments, follow these steps:
Step 1: Does the Fair Market Rent (FMR) of $950 cover your debt service?
- Yes. If your debt service is less than $950 per month, then the FMR can cover your expenses. This is a prerequisite for any Section 8 investment.
- No. If your debt service exceeds $950 per month, then it is not advisable to invest in this area under the Section 8 program as the rent will not be sufficient to meet your financial obligations.
- It depends. If your debt service is close to $950, you must consider other income sources or cost-saving measures to ensure profitability.
Step 2: How does the market rent compare to the FMR?
- Above FMR. If the market rent is higher than $950, you might want to consider other investment opportunities where you can receive higher rents without the constraints of Section 8.
- At or Below FMR. If the market rent is at or below $950, then Section 8 could be a viable option as it aligns well with the actual rental rates in the area.
Step 3: Is there sufficient demand based on the percentage of renters and days on market (DOM)?
- High Renters' Percentage + Low DOM. If the majority of residents are renters and properties are selling quickly (low DOM), this indicates strong demand for rentals, making ZIP 27294 a good investment choice.
- Low Renters' Percentage + High DOM. If few residents are renters and properties take a long time to sell, demand for rental properties is weak, and investing in this area may not be profitable.
- It depends. If the renters' percentage and DOM are moderate, you need to further analyze the local rental market trends, tenant turnover rates, and competition to make an informed decision.
Note: The data for market rent, percentage of renters, and days on market for ZIP 27294 is currently unavailable. To proceed, you would need to gather this information through local real estate agents, market studies, or online real estate platforms.
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.