Location: Greensboro-High Point, 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 | $1,300 |
| 1 Bedroom | $1,350 |
| 2 Bedrooms | $1,470 |
| 3 Bedrooms | $1,900 |
| 4 Bedrooms | $2,230 |
| 5 Bedrooms | $2,587 |
| 6 Bedrooms | $2,897 |
| 7 Bedrooms | $3,129 |
| 8 Bedrooms | $3,285 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,470 | $207,856 | 0.71% | D |
| 3BR | $1,900 | $306,082 | 0.62% | D |
| 4BR | $2,230 | $377,119 | 0.59% | F |
| 5BR | $2,587 | $365,204 | 0.71% | D |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 27377, which covers Whitsett, North Carolina, is fundamentally about understanding the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1,260, whereas the Zillow Rent Index (ZORI) indicates that the market rent stands at $1,933. This creates a significant gap of $673 per month, or approximately 35%, between what voucher holders can pay and the open-market rental rate.
Given that the FMR is lower than the market rent, landlords and small-portfolio investors must consider the cost implications of housing voucher tenants. While vouchers ensure timely payments, they also mean accepting a rate that is well below the open-market value. This scenario reduces potential monthly rental income by $673, which is a considerable amount when compared to the overall median income of $90,181 in Whitsett, NC. The decision to accept voucher tenants should be based on an assessment of whether the steady income stream justifies the lower rate.
In the context of Whitsett, where 29.9% of residents are renters and the median home value is $325,566, the choice to participate in the Section 8 program is a strategic one. It's important to recognize that while the FMR is significantly lower than the market rent, it still represents a substantial portion of the average monthly income for many residents. Therefore, landlords should carefully evaluate their property costs, including maintenance, utilities, and other expenses, to determine if renting to voucher tenants at the FMR will still provide a positive cash flow.
To summarize, the gap between the FMR and the market rent in ZIP 27377 is $673 per month, or 35%. Landlords should weigh this against the stability of income provided by the Section 8 program. Given the local economic conditions, accepting voucher tenants could be a viable strategy, but it requires a thorough financial analysis to ensure profitability.
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.