Location: Wilkes County, NC | Metro: Surry County, NC
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 | $840 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,490 |
| 5 Bedrooms | $1,728 |
| 6 Bedrooms | $1,935 |
| 7 Bedrooms | $2,090 |
| 8 Bedrooms | $2,195 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,060 | $178,265 | 0.59% | F |
| 3BR | $1,300 | $252,755 | 0.51% | F |
| 4BR | $1,490 | $345,149 | 0.43% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 28621, Elkin, NC, might have several concerns regarding the feasibility of investing in rental properties under the Section 8 program. Let's address these concerns head-on using the available data.
Objection 1: Will Fair Market Rent (FMR) of $950 (for metro FY 2026) cover the mortgage on a $223,008 home?
The FMR of $950 is a crucial figure for understanding the potential rental income from a Section 8 property. To determine if it covers the mortgage, we must consider the interest rates and loan terms. Assuming a typical 30-year fixed-rate mortgage at an average rate of around 5%, the monthly mortgage payment for a $223,008 home would be approximately $1,185. This means that the FMR does not fully cover the mortgage payment, leaving a shortfall of $235 per month. Investors should factor in this gap when considering the financial viability of such an investment.
Objection 2: Is there enough renter demand at 31.3%?
The 31.3% represents the share of renters in the ZIP code. While this percentage indicates a significant portion of the population relies on rentals, it is essential to understand how this compares to the overall housing market and vacancy rates. Unfortunately, the data provided does not include vacancy rates or the total number of rental units, making it difficult to assess the strength of the rental demand. However, given the reliance on rental housing, it suggests a steady demand, though further investigation into vacancy rates and tenant turnover would provide a clearer picture.
Objection 3: Will vouchers keep pace with $783 market rents?
The voucher amount is expected to align with the FMR, which is set at $950 for FY 2026. This is higher than the current market rent of $783, indicating that vouchers will likely cover the market rent and offer a buffer against inflation. However, it is important to note that voucher amounts can fluctuate based on local housing market conditions and federal funding levels. Continuous monitoring of both the FMR and actual market rents will be necessary to ensure long-term financial stability.
In conclusion, while the data provides insights into the potential challenges and opportunities in ZIP 28621, it is clear that the FMR does not fully cover the mortgage payments for a $223,008 home. The renter demand appears strong but requires further analysis to confirm. Lastly, vouchers are projected to exceed current market rents, offering a degree of security against rising costs. These points should be carefully considered before making any investment decisions.
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.