Section 8 Fair Market Rent (FMR) for ZIP 27360 - 2027

Investment Score for ZIP 27360

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$940
1 Bedroom	$980
2 Bedrooms	$1,070
3 Bedrooms	$1,470
4 Bedrooms	$1,770
5 Bedrooms	$2,053
6 Bedrooms	$2,299
7 Bedrooms	$2,483
8 Bedrooms	$2,607

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$980	$110,475	0.89%	C
2BR	$1,070	$146,485	0.73%	D
3BR	$1,470	$249,824	0.59%	F
4BR	$1,770	$339,483	0.52%	F
5BR	$2,053	$398,848	0.51%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 27360 (Thomasville, NC) #### Section 8 Voucher Dynamics In ZIP code 27360, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $1,010 per month, which represents approximately 19.6% of the median household income of $61,983. This suggests that the rent for a two-bedroom unit is relatively affordable for the average resident. However, the actual rental market price for a two-bedroom unit is significantly higher, with Zillow reporting a median price of $147,175. The price-to-FMR ratio is 12.1x, indicating that the actual market rent is likely much higher than the FMR. For instance, if we assume the monthly rent based on the median price, it would be around $1,226 per month ($147,175/120 months, assuming a 12-year mortgage). This means that a voucher holder with a two-bedroom voucher would only cover about 82.4% of the actual rent ($1,010/$1,226), leaving them to pay the remaining $216 out-of-pocket. This can create significant financial strain for voucher recipients, who may already be living on limited incomes. #### Affordability & Renter Profile The population of Thomasville is 49,510, with 31.5% of residents being renters. This indicates a substantial demand for rental housing. Given the occupancy rate of 92.5%, it appears that the market is relatively tight, with most available units being occupied. The median household income of $61,983 suggests that many residents are middle-class, but the high price-to-FMR ratio implies that the rental market is not particularly affordable for lower-income individuals. The 19.6% of median income required for a two-bedroom apartment is still a considerable portion, especially for those relying on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 27360 offers a mixed picture. While the actual market rent is higher than the FMR, making it potentially cash-flow positive, the gap between the FMR and market rent could pose challenges for landlords accepting Section 8 vouchers. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical operating costs. Assuming a conservative estimate of 50% of the rent going towards expenses (including property taxes, insurance, maintenance, etc.), a landlord accepting a two-bedroom voucher at $1,010 would have $505 left for profit. This is less than the estimated actual market rent of $1,226, where the profit would be $613. Therefore, while the market rent provides better cash flow, the FMR is still positive but with a smaller margin. The investment grade for this area would depend on several factors, including the stability of the local economy, the demand for rental properties, and the likelihood of finding tenants willing to accept Section 8 vouchers. Given the high occupancy rate and the significant proportion of renters, there is a strong demand for rental housing. However, the high price-to-FMR ratio might deter some potential tenants who cannot afford the additional costs beyond their vouchers. #### Specific Actionable Insights 1. **Targeting Higher-Rent Properties**: Investors should consider targeting properties with higher rents, such as three-bedroom or four-bedroom units, where the FMR is $1,380 and $1,670 respectively. These higher FMRs provide a better cushion against the gap between FMR and market rent. For example, a three-bedroom unit with a market rent of $1,670 would leave a profit of $860 after covering 50% of expenses, which is more attractive than a two-bedroom unit. 2. **Improving Property Value**: Since the price-to-FMR ratio is very high, investors could focus on improving the value of their properties to justify higher rents. This could involve renovations, upgrades, and ensuring the property meets modern standards. By doing so, they can attract tenants willing to pay the higher market rates, thereby increasing profitability. 3. **Exploring Non-Section 8 Tenants**: Given the high occupancy rate and the significant proportion of renters, there is a possibility of attracting non-Section 8 tenants who can afford the higher market rents. This strategy could help mitigate the risk associated with the lower FMRs and ensure a more stable cash flow. #### Bottom Line For Section 8-focused investors, the recommendation is to **Hold**. While the FMRs are positive, the significant gap between FMR and market rent makes it challenging to find tenants who can afford the additional costs. Additionally, the high price-to-FMR ratio suggests that the market is not particularly affordable for lower-income individuals, which could limit the pool of potential voucher holders. However, the strong demand for rental housing and the high occupancy rate indicate that there is a solid foundation for investment. Investors should carefully evaluate the balance between accepting Section 8 vouchers and attracting non-voucher tenants who can afford higher rents.

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.