Location: Durham-Chapel Hill, NC | Metro: Durham-Chapel Hill, NC HUD Metro FMR Area
| 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 |
U.S. Census Bureau data (2024)
The ZIP code 27213 presents several challenges for landlords considering Section 8 investments. Tenant turnover is a significant concern due to the discrepancy between the market rent and the Fair Market Rent (FMR) of $1250 for FY 2024. This difference can lead to tenants seeking more affordable options, resulting in higher turnover rates. Additionally, vacancy exposure is heightened because of the lack of data on the days on market (DOM), indicating potential unpredictability in filling vacancies. The deferred maintenance exposure is also a risk factor, as there is no information available on the typical home value and median income, which can affect the condition of properties and the ability of tenants to cover maintenance costs.
Despite these risks, the ZIP code's characteristics offer some mitigating factors. With a 0.0% renter share, it suggests that there is a high concentration of renters in the area. High renter density typically translates into greater demand for housing vouchers, which can stabilize occupancy rates. This strong demand for rental housing can offset some of the risks associated with tenant turnover and vacancy exposure.
In conclusion, the ZIP code 27213 poses a moderate risk for a first-time Section 8 landlord. While there are notable challenges such as tenant turnover and vacancy exposure, the high renter density provides a supportive environment that can help manage these risks effectively.
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.