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 | $1,020 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,940 |
| 5 Bedrooms | $2,250 |
| 6 Bedrooms | $2,520 |
| 7 Bedrooms | $2,722 |
| 8 Bedrooms | $2,858 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,160 | $184,063 | 0.63% | D |
| 3BR | $1,610 | $281,493 | 0.57% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 27299, Linwood, NC, involve understanding the SAFMR (Small Area Fair Market Rent) and how it compares to the local market rent. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $1040. This figure is specific to this ZIP code and reflects the fair market rent determined by HUD for the area.
In contrast, the local market rent for a two-bedroom unit in ZIP 27299 is $938, according to the latest Census ACS data. This indicates that the SAFMR is higher than the average local market rent, which can be beneficial for landlords participating in the Section 8 program.
A landlord should understand that the actual reimbursement from a Section 8 voucher does not simply equal the SAFMR. Instead, it is calculated based on the tenant's portion of the rent plus any utility allowances. Typically, the tenant is expected to pay 30% of their adjusted income towards rent. If we assume an average adjusted income of $1500 (for illustrative purposes), the tenant would pay about $450 towards rent.
The remaining amount is covered by the housing authority, up to the SAFMR. In this case, the housing authority would reimburse the landlord the difference between the tenant's payment and the SAFMR, which is $590. However, if the local market rent is lower, the housing authority will only pay the lesser of the SAFMR or the actual rent charged, meaning they would pay the difference between the tenant's portion and the local market rent of $938.
To summarize, in ZIP 27299, the typical reimbursement for a two-bedroom apartment would be the difference between the local market rent and the tenant's portion. Given the SAFMR is higher than the local market rent, landlords will receive the full local market rent of $938, with the tenant paying $450 and the housing authority covering the rest. This leaves no gap but also no surplus in terms of the reimbursement compared to the local market rent.
In conclusion, landlords in ZIP 27299 can expect to be reimbursed the full local market rent of $938 per month for a two-bedroom apartment, with no financial shortfall or surplus when considering the SAFMR of $1040 and the tenant's portion of the rent.
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.