Location: Caswell County, NC | Metro: Durham-Chapel Hill, NC HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,910 | $408,756 | 0.47% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 27231, located in Caswell County, North Carolina, reveals a clear opportunity for positive cash flow when leveraging the HUD Fair Market Rent (FMR) of $1640 for FY 2024. In comparison, the average market rent based on Census ACS data is significantly lower at $690. This substantial gap indicates that voucher tenants will cashflow at FMR levels, providing a reliable income stream for landlords and small-portfolio investors.
To further analyze the investment potential, consider the median home value in the area, which stands at $405,998. The rent-to-price ratio can be calculated by comparing the HUD FMR to the median home value. At an annual rent of $1640 x 12 months = $19,680, the rent-to-price ratio is approximately 4.85%, suggesting a relatively low rental yield compared to the property value. However, this ratio is still favorable for long-term investors seeking stable cash flow rather than high yields.
The dynamics between renting and buying properties in ZIP 27231 do not indicate significant challenges with Days on Market (DOM) or price-cut shares. Both metrics are noted as N/A, implying that there is little to no data available on these factors, which typically suggest a well-balanced market without excessive inventory or price reductions.
In conclusion, the strongest investor angle in ZIP 27231 is cashflow. With voucher tenants paying at or above the HUD FMR, and the market rent being much lower, landlords can expect consistent and reliable income from their investments. Additionally, the stability of the local real estate market supports long-term holding strategies, making it an attractive option for those looking to secure steady returns.
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.