Location: Caswell 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 | $740 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,050 | $154,047 | 0.68% | D |
| 3BR | $1,280 | $266,823 | 0.48% | F |
| 4BR | $1,610 | $361,206 | 0.45% | F |
| 5BR | $1,868 | $368,688 | 0.51% | F |
U.S. Census Bureau data (2024)
ZIP code 27320, located in Reidsville, NC, falls within the Caswell County, NC metro area. Its Federal Market Rent (FMR) for fiscal year 2024 is set at $960, while the average market rent stands at $825. The median home value in this ZIP is $210,254, and the renter share is 27.6%. These figures can be used to determine the position of 27320 within the broader Caswell County market.
To evaluate if 27320 represents a value pocket, a mid-tier neighborhood, or a premium sub-market, we must consider the differences between its FMR and market rent. With an FMR of $960 and a market rent of $825, landlords in 27320 could potentially receive higher subsidies from the government through the Section 8 program, making it attractive for investors looking to capitalize on the subsidy gap. This suggests that 27320 might be considered a value pocket within the metro, offering opportunities where rents are lower than the FMR but still provide decent returns when paired with Section 8 vouchers.
The median home value of $210,254 is another critical metric. If this figure is below the average home value in other ZIP codes within Caswell County, it indicates that 27320 may offer relatively affordable housing options. Coupled with the 27.6% renter share, which is notably high, this ZIP could be seen as a sweet spot for Section 8 investments. High renter share percentages typically mean a larger pool of potential tenants eligible for Section 8 assistance, thus increasing the demand for rental properties.
However, without comparative data on the FMR, market rent, and home values of other ZIP codes in Caswell County, it's challenging to definitively label 27320 as either a value pocket or a premium sub-market. The presence of a below-average home value with a high renter share does suggest that 27320 could be a particularly appealing area for landlords and small-portfolio investors interested in Section 8 housing. This combination often points to areas where there is significant government support for housing, creating a stable and predictable investment environment.
In summary, based on the given data, ZIP code 27320 appears to be a value pocket within the Caswell County, NC metro. It offers a lower market rent compared to the FMR, a high renter share, and potentially affordable home values, all of which make it an attractive location for Section 8 real estate investments.
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.