Location: Winston-Salem, NC | Metro: Iredell 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 | $1,020 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,940 |
| 5 Bedrooms | $2,250 |
| 6 Bedrooms | $2,520 |
| 7 Bedrooms | $2,722 |
| 8 Bedrooms | $2,858 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,160 | $221,224 | 0.52% | F |
| 3BR | $1,540 | $299,744 | 0.51% | F |
| 4BR | $1,940 | $399,707 | 0.49% | F |
| 5BR | $2,250 | $355,968 | 0.63% | D |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 28625, Statesville, NC, provides a clear picture of potential investment returns. For the annualized Fair Market Rent (FMR) of a 2-bedroom unit at $1050 per month, the annual income would be $12,600. Given the median home value of $307,527, this translates into an implied gross yield of approximately 4.1%. This calculation is derived by dividing the annual income ($12,600) by the median home value ($307,527).
In contrast, using the Zillow Observed Rental Index (ZORI), which indicates a market rent of $1,940 per month for a similar property, the annual income would rise to $23,280. The implied gross yield in this scenario would be significantly higher at about 7.6%, calculated by dividing the annual income ($23,280) by the median home value ($307,527).
Considering the 27.0% renter density in the area, it is important to note that the majority of homeownership suggests a potentially less favorable environment for long-term rental investments. However, the availability of Section 8 vouchers can offset some of these concerns by providing a stable tenant base.
The N/A-day DOM (days on market) indicates either a very quick turnover or that the data is incomplete, which could imply strong demand for rental properties in the area. Despite this, the actual gross yield is likely to be closer to the lower end of the spectrum due to the high proportion of homeownership and the likelihood of competition among landlords for Section 8 tenants.
While the market rent scenario presents a more attractive gross yield, the reality of securing a Section 8 tenant with the associated stability and government support makes the FMR scenario more practical. Investors should weigh the benefits of guaranteed income versus the potential for higher yields when making decisions about properties in ZIP 28625.
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.