Location: Burlington, NC | Metro: Burlington, NC MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $980 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,910 |
| 5 Bedrooms | $2,216 |
| 6 Bedrooms | $2,482 |
| 7 Bedrooms | $2,681 |
| 8 Bedrooms | $2,815 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 27202 within the Burlington, NC MSA reveals several critical insights for landlords and small-portfolio investors.
The first question concerns whether the rent math works. The Fair Market Rent (FMR) for ZIP 27202 in fiscal year 2024 is set at $1220. However, the lack of specific market rent data makes it challenging to compare directly. Assuming the FMR aligns closely with the market rate, landlords can expect to charge around this amount per unit. Without precise market rent figures, it's difficult to assess if this FMR is above or below market rates, which would determine the profitability of rental properties.
The second question pertains to the affordability of property acquisition. The median home value is not specified, nor is the average number of days on the market (DOM) or the percentage of homes that require price cuts. These missing metrics make it impossible to provide a definitive answer regarding the ease or difficulty of acquiring properties at reasonable prices. Investors would need to conduct further research to understand the local real estate market dynamics and the cost of entry.
The third question addresses tenant demand. With a total population of 135, the renter share stands at an extremely low 0.0%. This indicates that virtually all residents in ZIP 27202 own their homes rather than renting. Consequently, there is little to no demand for rental units, suggesting that landlords and investors would struggle to find tenants willing to pay the FMR of $1220.
Verdict: ZIP 27202 presents significant challenges for landlords and small-portfolio investors due to the absence of detailed market rent data, unknown acquisition costs, and a near-zero renter share. Given these factors, the investment potential appears limited, and caution is advised before committing resources to this area.
Data Sources: FMR data from HUD (2027). 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.