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 | $1,160 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,710 |
| 4 Bedrooms | $2,010 |
| 5 Bedrooms | $2,332 |
| 6 Bedrooms | $2,612 |
| 7 Bedrooms | $2,821 |
| 8 Bedrooms | $2,962 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,320 | $212,428 | 0.62% | D |
| 3BR | $1,710 | $314,342 | 0.54% | F |
| 4BR | $2,010 | $603,135 | 0.33% | F |
| 5BR | $2,332 | $878,802 | 0.27% | F |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 properties in ZIP code 27408 in Greensboro, NC, are significant and must be carefully considered. Firstly, tenant turnover can be a major issue, especially when the market rent stands at $1,447 compared to the Fair Market Rent (FMR) of $1,250 for FY 2024. This discrepancy indicates that tenants might prefer to seek out more affordable housing options, leading to higher turnover rates which can impact the stability and profitability of your rental property.
Vacancy exposure is another critical concern. With an average Days on Market (DOM) of 27 days, there's a substantial period during which the property remains unoccupied, resulting in lost rental income. This is particularly problematic given the typical home value of $347,586, which suggests that the area has a mix of higher-priced homes and potentially more competitive rental markets. The median income of $83,862 further complicates matters, as it may limit the number of households eligible for Section 8 vouchers, increasing the likelihood of vacancies.
Deferred maintenance is also a risk factor. The median income figure implies that many residents might struggle to afford higher rents, thus relying on government assistance. This reliance can lead to landlords deferring necessary repairs and maintenance due to financial constraints or the limitations of the voucher program, which can depreciate property values over time if not managed properly.
However, these risks are somewhat mitigated by the high renter share of 26.1%. A large proportion of renters typically translates into higher demand for rental properties, including those participating in the Section 8 program. This increased demand can help stabilize occupancy rates and ensure a steady stream of tenants, even if they require assistance through the voucher system.
In conclusion, the overall risk for a first-time Section 8 landlord in ZIP 27408 is moderate. While there are notable challenges such as tenant turnover and vacancy exposure, the high renter density offers a counterbalance that can support a successful investment strategy with careful management.
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.