Location: Gates County, NC | Metro: Gates County, 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 | $1,680 |
| 1 Bedroom | $1,700 |
| 2 Bedrooms | $1,900 |
| 3 Bedrooms | $2,610 |
| 4 Bedrooms | $3,090 |
| 5 Bedrooms | $3,584 |
| 6 Bedrooms | $4,014 |
| 7 Bedrooms | $4,335 |
| 8 Bedrooms | $4,552 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,610 | $264,271 | 0.99% | C |
| 4BR | $3,090 | $337,710 | 0.91% | C |
U.S. Census Bureau data (2024)
ZIP 27937, located in Gates County, NC, serves as a strategic anchor for cash flow within a Section 8 portfolio. The Family Monthly Rent (FMR) for FY 2024 is set at $1150, which is below the market rent of $1,208. This creates a positive spread of $58 per month, ensuring that landlords receive slightly more than the subsidized rate while still remaining competitive in the local rental market.
The median home value in ZIP 27937 is $261,328. Given the lower FMR compared to the market rent, landlords can effectively manage their properties to maximize cash flow without the risk of significant vacancies. The area's renter share stands at 18.6%, indicating a moderate demand for rentals, and the median income of $70,086 suggests that tenants have the financial stability to meet their rental obligations.
While appreciation plays and diversifiers are important components of any real estate investment strategy, ZIP 27937 excels as a cash-flow anchor due to its stable income levels and the favorable spread between FMR and market rents. The lack of data on price-cut shares and days on market (DOM) does not detract from its role as an anchor; rather, it underscores the predictability and reliability of rental income in this region. Landlords should focus on maintaining high-quality properties to attract and retain tenants, thereby securing steady cash flows.
In summary, ZIP 27937 is best suited as a cash-flow anchor within a Section 8 portfolio. The $58 monthly spread between the FMR and market rents, combined with the area's median income and renter share, provides a solid foundation for consistent returns. This makes it an ideal choice for landlords and small-portfolio investors seeking stable and predictable cash flows from their investments.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.