Location: Montgomery 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 | $830 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $144,593 | 0.7% | D |
| 3BR | $1,320 | $237,385 | 0.56% | F |
| 4BR | $1,670 | $301,251 | 0.55% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $940 for ZIP code 27371 in Troy, North Carolina, can adequately cover the mortgage on a home priced at $198,654. To evaluate this, consider that the FMR represents the maximum amount that a low-income family should pay for housing costs, including utilities. A typical mortgage payment on a home of this value, assuming a 20% down payment and a 30-year fixed-rate loan at an average interest rate, would be approximately $700-$800 per month before taxes and insurance. Therefore, the FMR of $940 is sufficient to cover the mortgage payment and leaves room for additional expenses.
The second objection concerns the level of renter demand, which stands at 26.6% of the total population. This figure suggests that nearly one-quarter of residents are renters, which may seem low compared to urban areas. However, it's important to note that in rural areas like Troy, the rental market is often more stable and less competitive. The percentage indicates a steady demand for rental properties, and while it is lower than in many metropolitan areas, it does not necessarily mean a lack of opportunity. Landlords in ZIP 27371 can benefit from a consistent tenant pool, reducing turnover rates and vacancy periods.
The final concern is whether Housing Choice Vouchers will keep pace with the market rent of $685. The voucher program aims to cover 30% of a household's income, adjusted for local conditions. In Troy, the median household income is relatively modest, and thus the voucher amounts may not always match the market rent. However, the U.S. Department of Housing and Urban Development (HUD) regularly adjusts voucher values to reflect changes in the local cost of living and housing market. While it's true that vouchers may sometimes fall short of covering the full market rent, they provide a reliable source of income for landlords who participate in the program, ensuring steady payments and fewer financial risks associated with tenant defaults.
It's worth noting that while the data provides a snapshot of the current situation, future economic conditions could impact these factors. For instance, changes in interest rates could alter the affordability of mortgages, and shifts in the local economy could affect both rental demand and the purchasing power of voucher recipients. Nevertheless, based on the available data, investing in rental properties in Troy appears to be a viable strategy for landlords and small-portfolio investors.
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.