Section 8 Fair Market Rent (FMR) for ZIP 27207 - 2027
Location: Durham-Chapel Hill, NC | Metro: Durham-Chapel Hill, NC HUD Metro FMR Area
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $1,280 |
| 1 Bedroom | $1,360 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $1,910 |
| 4 Bedrooms | $2,280 |
| 5 Bedrooms | $2,645 |
| 6 Bedrooms | $2,962 |
| 7 Bedrooms | $3,199 |
| 8 Bedrooms | $3,359 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$70,211
Housing Authorities Serving ZIP 27207
A landlord considering investing in ZIP code 27207 for Section 8 should follow this decision tree:
1) Does FMR $1190 (zip FY 2024) clear debt service on a $296,638 property?
- Yes: The Fair Market Rent (FMR) of $1190 is sufficient to cover the debt service on a property valued at $296,638. This means that if the property's monthly mortgage payment is less than or equal to $1190, then the landlord can expect to break even or make a profit when renting to Section 8 tenants.
- No: If the monthly debt service exceeds $1190, then relying solely on Section 8 to cover costs would result in a financial loss. In this case, the landlord must either find ways to reduce the debt service or look for additional income sources.
2) Is market rent $758 (Census ACS) above, at, or below FMR?
- Above: If the market rent is higher than the FMR, then landlords might consider whether they want to accept Section 8 tenants who pay the lower FMR rate or pursue higher-paying market-rate tenants. For ZIP 27207, the market rent of $758 is below the FMR, indicating that landlords can potentially attract both types of tenants.
- At: Not applicable since the market rent is below the FMR.
- Below: With market rent at $758, landlords will find that the FMR provides a better rental income. However, they must also evaluate the demand for housing.
3) Are 17.2% renters + N/A-day DOM enough demand?
- It depends: ZIP 27207 has a 17.2% share of renters, which suggests a moderate demand for rental properties. The Days on Market (DOM) being listed as N/A indicates incomplete data, making it challenging to assess how quickly properties are rented. If the landlord can confirm that there is a steady flow of rental inquiries, then the answer leans towards yes. Otherwise, if the DOM is typically long, indicating slow turnover, the answer would be no.
To summarize, if the debt service is covered by the FMR of $1190, the market rent is lower, and there is sufficient demand for rentals, then the investment in ZIP 27207 for Section 8 properties is viable. Landlords should seek additional local market insights to fill gaps in the data regarding DOM to make an informed decision.
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.