Section 8 Fair Market Rent (FMR) for ZIP 27358 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 27358

• Housing Authority of the City of Greensboro (Greensboro, NC) - 5,264 Section 8 vouchers
• Housing Authority of the City of High Point (High Point, NC) - 1,872 Section 8 vouchers
• The New Reidsville Housing Authority (Reidsville, NC) - 226 Section 8 vouchers
• Madison Housing Authority (Madison, NC)

To determine if a landlord should buy in ZIP code 27358 (Summerfield, NC) for Section 8 purposes, follow this decision tree:

1) Does FMR $1300 (zip FY 2024) clear debt service on a $517,445 property?

• Yes: If you can secure a property for $517,445, the Fair Market Rent (FMR) of $1300 per month is likely sufficient to cover your debt service. This assumes that your debt service is lower than or equal to the monthly rental income.
• No: The FMR of $1300 does not cover the debt service on a $517,445 property. If your debt service exceeds $1300 per month, purchasing in this area would not be advisable under the Section 8 program.

2) Is market rent $1,022 (Census ACS) above, at, or below FMR?

• Above: The market rent of $1,022 is below the FMR of $1300. This indicates that properties rented through Section 8 could command higher rents compared to the general market, potentially offering a financial advantage.
• At: Not applicable in this scenario as the market rent is below the FMR.
• Below: The market rent of $1,022 is below the FMR of $1300. This suggests that Section 8 tenants might pay more than what the general market offers, making it a favorable option.

3) Are 5.5% renters + N/A-day DOM enough demand?

• It Depends: With 5.5% of the population being renters, there is some demand, but the Days on Market (DOM) is not specified. If the DOM is low, indicating quick turnover, then the demand is strong enough to consider investing. However, without a specific DOM figure, it's challenging to make a definitive recommendation. If the DOM is high, it could suggest a slower rental market, which might not support a Section 8 investment.

In summary, if the FMR of $1300 covers your debt service and you can take advantage of the higher rent relative to the market rate of $1,022, then Summerfield, NC is a viable location for Section 8 investments. However, the lack of a specific DOM figure means that the strength of rental demand must be assessed further before making a final decision.

Data Sources: FMR data from HUD (2027). 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.