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 | $930 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,060 | $180,409 | 0.59% | F |
| 3BR | $1,400 | $298,246 | 0.47% | F |
| 4BR | $1,760 | $338,644 | 0.52% | F |
U.S. Census Bureau data (2024)
A landlord considering ZIP 28634 (Harmony, NC) for Section 8 investments must follow a structured decision-making process. The first question to address is whether the Fair Market Rent (FMR) of $1010 can cover the debt service on a property valued at $286,296.
Does FMR $1010 clear debt service on a $286,296 property?
Yes: If the landlord's analysis shows that the monthly rental income of $1010 is sufficient to meet the mortgage payments and other expenses associated with the property, then the investment could be viable. This would require calculating the total monthly debt service, including mortgage payments, insurance, taxes, and maintenance costs.
No: If the FMR of $1010 does not cover the debt service, then the investment is not advisable unless the landlord can secure additional sources of income or reduce costs to make the numbers work.
It Depends: If the landlord has a low-cost financing option or plans to manage the property themselves, reducing operational expenses, then the FMR might be adequate. However, this requires a detailed financial model to confirm.
Is market rent $982 (Census ACS) above, at, or below FMR?
Above FMR: If the market rent exceeds the FMR, landlords can potentially earn higher rents from non-Section 8 tenants, which can improve the overall profitability of the investment. However, they must ensure that the difference between market rent and FMR does not exceed HUD limits.
At FMR: If market rent matches the FMR, landlords will likely need to rely solely on Section 8 vouchers for tenants, which means their revenue will be directly tied to the FMR. They should consider the stability and predictability of Section 8 funding.
Below FMR: If the market rent is below the FMR, landlords can still benefit from the higher guaranteed payment from Section 8 vouchers. However, this scenario suggests a lower demand for rental properties in the area, which could affect the overall attractiveness of the investment.
Are 22.7% renters + N/A-day DOM enough demand?
Yes: With 22.7% of residents being renters, there is a significant portion of the population who might be interested in renting. Additionally, if the Days on Market (DOM) is low or average, this indicates a healthy demand for rental units. Landlords should also check local vacancy rates and competition levels.
No: If the DOM is consistently high, indicating long periods before a rental unit is occupied, then the demand may not be robust enough to support an investment. High DOM values suggest difficulty in finding tenants, even among those eligible for Section 8.
It Depends: If the DOM data is not available, the landlord must look at other indicators such as vacancy rates and the number of Section 8 participants in the area. A high percentage of renters but a lack of DOM data suggests that while there is interest in rentals, the actual speed of filling vacancies is uncertain.
In conclusion, landlords must carefully evaluate the financials and market conditions of ZIP 28634. The viability of a Section 8 investment hinges on the ability of FMR to cover costs, the relationship between FMR and market rent, and the strength of rental demand. Without specific debt service figures, it's impossible to give a definitive yes or no answer. However, the data points to a moderate potential for success, contingent upon the landlord's ability to manage costs and the specific rental market dynamics.
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.