Section 8 Fair Market Rent (FMR) for ZIP 27217 - 2027

Investment Score for ZIP 27217

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	$930
1 Bedroom	$1,110
2 Bedrooms	$1,220
3 Bedrooms	$1,510
4 Bedrooms	$1,800
5 Bedrooms	$2,088
6 Bedrooms	$2,339
7 Bedrooms	$2,526
8 Bedrooms	$2,652

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	$1,220	$158,509	0.77%	D
3BR	$1,510	$239,213	0.63%	D
4BR	$1,800	$310,225	0.58%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 27217 (Burlington, NC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 27217 in Burlington, NC, for 2026 is set at $1180 for a two-bedroom unit. This figure represents 27.3% of the median household income in the area, which is $51,950. To understand how this compares to actual rents, we can look at the Zillow median price for a two-bedroom home, which is $156,639. The price-to-FMR ratio of 11.1x suggests that the actual rental prices are significantly higher than the FMR. For voucher holders, this means that they will face constraints in finding affordable housing. The maximum rent they can pay under the Section 8 program is capped at the FMR, which is $1180 for a two-bedroom unit. Given that the actual rents are likely much higher, voucher holders will have limited options and may struggle to find suitable housing within their budget. #### Affordability & Renter Profile ZIP code 27217 has a population of 41,406, with 39.8% of residents being renters. This indicates a significant demand for rental properties in the area. The occupancy rate of 89.7% suggests that the market is relatively tight, with most available units being occupied. However, the high price-to-FMR ratio of 11.1x implies that there is a significant gap between what renters can afford and the actual rental prices. Given the median household income of $51,950, it is clear that many residents are low-income earners who rely on rental assistance programs like Section 8. The FMR for a three-bedroom unit is $1460, which is still only 28.1% of the median income, indicating that even larger units are relatively unaffordable for the average resident. #### Investor Angle From an investor perspective, the ZIP code 27217 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1180, but the actual rental prices are much higher, suggesting that landlords could potentially charge more than the FMR. However, the high price-to-FMR ratio also indicates that the market is not entirely driven by the FMR, and there is a risk that some tenants may struggle to afford even the FMR rates due to the overall cost of living. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with rental properties, such as mortgage payments, property taxes, insurance, maintenance, and utilities. Assuming a conservative estimate of these expenses at around 70% of the FMR, a landlord would need to ensure that the remaining 30% covers their profit margin. For a two-bedroom unit, this would mean covering approximately $826 in expenses and having $354 left over for profit. This calculation assumes that the property is fully rented and that there are no vacancies or other issues that might reduce cash flow. The investment grade for this ZIP code would be considered moderate. While there is a strong demand for rental properties, the high price-to-FMR ratio suggests that the market is not entirely aligned with the FMR, which could lead to difficulties in attracting tenants who are eligible for Section 8 vouchers. Additionally, the relatively low median income and high rent-to-income ratio indicate that the market is somewhat volatile and could be affected by economic changes. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units, such as one-bedroom or studio apartments, where the FMR is lower. For example, the FMR for a one-bedroom unit is $1070, which is still a reasonable amount for many low-income residents. This strategy could help attract more Section 8 voucher holders and ensure steady cash flow. 2. **Consider Location and Amenities**: Investors should carefully choose locations within ZIP code 27217 that offer good access to public transportation, employment centers, and essential services. Properties with additional amenities, such as laundry facilities or parking, may be more attractive to tenants and could command slightly higher rents while still being within the FMR guidelines. 3. **Maintain High Quality Standards**: To remain competitive in a tight rental market, properties should be well-maintained and meet all necessary safety and quality standards. This includes regular maintenance and repairs, ensuring compliance with local housing codes, and providing a clean and safe living environment. High-quality properties are more likely to be chosen by tenants and can help mitigate the risk of vacancy. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 27217 is to **Hold**. While there is a strong demand for rental properties, the high price-to-FMR ratio and the relatively low median income suggest that the market is challenging. Investors should be cautious about overpricing their units and should focus on maintaining high-quality standards to ensure steady occupancy. The best strategy would be to target smaller units where the FMR is more closely aligned with the actual rental prices, thereby maximizing the chances of attracting Section 8 voucher holders and achieving positive cash flow.

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.