Location: Davidson County, NC | Metro: Davidson County, 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 | $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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,000 | $126,585 | 0.79% | D |
| 2BR | $1,090 | $188,187 | 0.58% | F |
| 3BR | $1,510 | $290,874 | 0.52% | F |
| 4BR | $1,820 | $358,990 | 0.51% | F |
| 5BR | $2,111 | $397,389 | 0.53% | F |
U.S. Census Bureau data (2024)
The ZIP code 27295 in Lexington, NC, presents an interesting balance between yield and stability for real estate investments, particularly for those interested in Section 8 properties.
On the yield axis, the Fair Market Rent (FMR) for 2024 is set at $930, which is significantly lower than the market rent of $1,748. This indicates that there is a potential for higher rental yields if the property can attract non-Section 8 tenants willing to pay market rates. However, given the median home value of $289,341, the FMR suggests that Section 8 vouchers are a key component of the rental market, offering a stable but lower yield compared to the broader market.
Moving to the stability axis, 27295 has 24.5% of residents as renters, which is relatively low. The days on market (DOM) average of 36 days suggests a moderately active rental market, indicating that properties are generally occupied within a month. Additionally, the median household income of $63,961 provides insight into the financial capacity of the local population, which may influence their ability to secure housing outside of subsidized programs.
Considering these factors, ZIP 27295 leans towards being a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The low percentage of renters and moderate DOM suggest a stable demand for rental properties, while the lower FMR indicates that Section 8 properties will likely generate consistent cash flow, albeit at a rate below market rents. For landlords and small-portfolio investors, focusing on maintaining quality Section 8 properties can ensure a reliable source of income without the risks associated with higher-yield, less stable markets.
To summarize, the yield potential is driven by the $930 FMR versus the $1,748 market rent, while stability is reflected in the 24.5% renter population and the 36-day DOM average. The median income of $63,961 supports a stable tenant base, making it a suitable location for those seeking predictable returns over time.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.