Location: Greensboro-High Point, NC | Metro: Greensboro-High Point, NC HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,160 |
| 1 Bedroom | $1,200 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,690 |
| 4 Bedrooms | $1,990 |
| 5 Bedrooms | $2,308 |
| 6 Bedrooms | $2,585 |
| 7 Bedrooms | $2,792 |
| 8 Bedrooms | $2,932 |
The analysis for ZIP code 27416 in North Carolina reveals a unique scenario due to the lack of complete data. To derive the rough Section 8 cap-rate picture, we must rely on the available figures and make reasonable assumptions where necessary.
The Fair Market Rent (FMR) for a two-bedroom apartment in FY 2024 is set at $1200 annually. This figure is crucial for understanding the potential rental income under the Section 8 program. However, the absence of market rent data complicates the direct comparison needed to assess the cap rate accurately.
The median home value for ZIP 27416 is also not available, which makes it challenging to calculate an exact gross yield. The gross yield is derived by dividing the annual rental income by the property's value. For a property valued at the median home value, the gross yield would be calculated as follows:
The implied gross-yield comparison between the Section 8 scenario and the market rent scenario cannot be made concrete due to the missing data points. Nevertheless, it's important to consider the context of the area. With an unknown percentage of renter density and an unknown number of days on market (DOM), landlords and small-portfolio investors must rely on local real estate trends and consult with local experts to fill in these gaps.
Given the incomplete dataset, the most realistic approach for investors would be to focus on the guaranteed rental income from the Section 8 program, which is $1200 annually for a two-bedroom unit. This stability can be a significant advantage over relying on fluctuating market rents, especially in areas with uncertain economic conditions or housing markets.
To conclude, while a precise cap-rate analysis cannot be conducted without the median home value and market rent figures, the guaranteed income from the Section 8 program provides a stable foundation for investment decisions in ZIP 27416.
Data Sources: FMR data from HUD (2027).
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.