Section 8 Fair Market Rent (FMR) for ZIP 27209 - 2027

Location: Montgomery County, NC | Metro: Pinehurst-Southern Pines, NC MSA

Investment Score for ZIP 27209

Monthly Rent (2BR)

$1,230

Median Price (2BR)

$140,011

1% Rule

0.88%

Annual Yield

10.54%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,050
1 Bedroom	$1,120
2 Bedrooms	$1,230
3 Bedrooms	$1,710
4 Bedrooms	$2,060
5 Bedrooms	$2,390
6 Bedrooms	$2,677
7 Bedrooms	$2,891
8 Bedrooms	$3,036

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,230	$140,011	0.88%	C
3BR	$1,710	$203,631	0.84%	C
4BR	$2,060	$240,501	0.86%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

3,906

Median Household Income

$45,861

Housing Units

1,776

Renter Percentage

33.1%

Occupancy Rate

87.0%

Renter Occupied

511

The ZIP code 27209, encompassing Biscoe, North Carolina, is a rural area with a strong focus on agriculture and small-scale industries. The community offers a tranquil setting for residents while providing opportunities for landlords and small-portfolio investors interested in the real estate market.

Fair Market Rent (FMR): For the fiscal year 2026, the FMR for a two-bedroom apartment in the metro area is set at $1,030, indicating a stable demand for affordable housing.
Market Rent: According to the latest Census ACS data, the average market rent for properties in ZIP 27209 is $594, which is significantly below the FMR, suggesting potential for rental price increases.
Median Home Value: The median home value stands at $161,169, making it accessible for first-time homebuyers and offering a solid base for investment properties.
Renter Share: With 33.1% of the population being renters, there is a notable portion of the community relying on rental properties, creating a consistent demand for landlords.
Median Income: The median household income in the area is $45,861, which aligns well with the current rental prices and suggests that most residents can afford modest rent hikes without significant financial strain.

Investors looking to enter the Biscoe, NC real estate market will find a blend of affordability and stability. The discrepancy between the Fair Market Rent and the actual market rent presents an opportunity for price adjustments, potentially increasing rental yields. The median home value indicates that the area is suitable for purchasing properties at reasonable prices, while the renter share ensures a steady stream of tenants. Given the median income levels, there is room for modest rent increases to keep pace with the FMR, without risking a significant loss of tenants. This combination makes ZIP 27209 a viable option for both long-term investments and short-term rental strategies.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.