Section 8 Fair Market Rent (FMR) for ZIP 27215 - 2027

Investment Score for ZIP 27215

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	$1,210
1 Bedroom	$1,380
2 Bedrooms	$1,500
3 Bedrooms	$1,850
4 Bedrooms	$2,320
5 Bedrooms	$2,691
6 Bedrooms	$3,014
7 Bedrooms	$3,255
8 Bedrooms	$3,418

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,500	$186,307	0.81%	C
3BR	$1,850	$287,552	0.64%	D
4BR	$2,320	$398,684	0.58%	F
5BR	$2,691	$505,822	0.53%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 27215 (Burlington, NC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 27215, as set by HUD for 2026, is $1470 for a two-bedroom unit. This figure represents 25.6% of the median household income in Burlington, which stands at $68,825. However, the actual rental market in Burlington is significantly higher. According to Zillow, the median price for a two-bedroom home is $184,833, which translates into a monthly mortgage payment of approximately $924 if financed over 30 years at a 4% interest rate. Adding property taxes, insurance, and maintenance costs can bring the total monthly cost to around $1100-$1200, which is still below the FMR of $1470. Despite this, the actual rent charged in the market is much higher. The Price-to-FMR ratio of 10.5x indicates that the median market rent for a two-bedroom unit is likely around $15,615 per year ($1301.25 per month), far exceeding the FMR. This means that Section 8 voucher holders face significant constraints in finding affordable housing within the ZIP code. They would need to find units renting for less than $1470, which is challenging given the high market rents. #### Affordability & Renter Profile Burlington has a population of 47,102, with 40.3% of residents being renters. This suggests a substantial demand for rental properties. The occupancy rate of 93.0% further indicates that the market is relatively tight, with few vacant units available. Given the median household income of $68,825, the FMR for a two-bedroom unit at $1470 is indeed affordable for many residents. However, the actual market rents are much higher, making it difficult for lower-income households to find suitable accommodation without assistance. The high Price-to-FMR ratio of 10.5x implies that the rental market is highly competitive and expensive. For example, a two-bedroom unit renting at the median market price of $1301.25 per month would be unaffordable for many voucher holders who are limited to paying up to $1470. This tight market condition could lead to increased competition among renters, driving up prices even further. #### Investor Angle From an investor’s perspective, the ZIP code 27215 presents a mixed picture. While the actual market rents are high, the FMRs set by HUD are lower. To determine if investing in this ZIP code is cash-flow positive, we need to consider the potential rental income versus the costs of ownership. Assuming an investor purchases a two-bedroom unit for the median price of $184,833 and finances it over 30 years at a 4% interest rate, the monthly mortgage payment would be approximately $924. Adding property taxes (assuming a rate of 1%), insurance, and maintenance costs, the total monthly cost could range between $1100-$1200. If the investor can rent out the unit at the FMR of $1470, they would achieve a positive cash flow of about $270-$370 per month. However, the challenge lies in attracting tenants willing to pay the FMR. With only 25.6% of the median income allocated to housing, many residents might struggle to afford even the FMR. Therefore, while the FMR allows for positive cash flow, the actual market dynamics suggest that achieving these rents might be difficult due to the high competition and overall cost of living. In terms of investment grade, the ZIP code 27215 appears to be moderately attractive. The high occupancy rate and significant renter population indicate strong demand. However, the disparity between FMR and actual market rents poses a risk. Investors should carefully evaluate their ability to manage properties and attract tenants willing to pay the FMR. #### Specific Actionable Insights 1. **Focus on Lower-Rent Units**: Investors should focus on acquiring properties that can be rented out at or slightly above the FMR. For instance, a two-bedroom unit renting at $1470 would be ideal for attracting Section 8 voucher holders. This strategy would ensure positive cash flow while aligning with the affordability constraints faced by voucher holders. 2. **Consider Multi-Family Properties**: Given the high occupancy rate and significant renter population, multi-family properties could be more attractive. These properties often have economies of scale, reducing the overall cost per unit. Additionally, multi-family units can cater to a broader range of tenant needs, including families with children who require larger units. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can help streamline the process of leasing properties to Section 8 voucher holders. This can reduce vacancy rates and ensure a steady stream of qualified tenants. #### Bottom Line For Section 8-focused investors, the ZIP code 27215 offers a moderate opportunity. The high occupancy rate and significant renter population create a robust demand for affordable housing. However, the disparity between FMR and actual market rents poses a risk. Investors should focus on properties that can be rented out at or slightly above the FMR to ensure positive cash flow. Given these factors, the recommendation is to **Hold** on existing investments and **Skip** new acquisitions unless they can be acquired at a price allowing them to be rented out at the FMR.

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.