Location: Caswell County, NC | Metro: Burlington, NC MSA
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 | $980 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,910 |
| 5 Bedrooms | $2,216 |
| 6 Bedrooms | $2,482 |
| 7 Bedrooms | $2,681 |
| 8 Bedrooms | $2,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,230 | $197,437 | 0.62% | D |
| 3BR | $1,520 | $305,553 | 0.5% | F |
| 4BR | $1,910 | $426,950 | 0.45% | F |
| 5BR | $2,216 | $521,429 | 0.42% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 27244, Elon, NC, for fiscal year 2024 is set at $1,250. This figure represents the payment standard for landlords participating in the Section 8 Housing Choice Voucher program. It is important to note that this is not the rent you will charge your tenants directly; rather, it is the maximum amount that the government will pay towards the rent on behalf of eligible tenants.
In comparison, the local market rent, known as the Zillow Observed Rental Index (ZORI), stands at $1,685. This means that if you were to rent out your property without the Section 8 program, you could potentially charge a higher rent based on current market conditions.
The FMR of $1,250 reflects a 19.2% share of renters who might be interested in Section 8 housing. This indicates that nearly one-fifth of the potential rental market in Elon, NC, consists of individuals who would benefit from and seek out Section 8 vouchers. This demand can be significant for landlords looking to ensure steady occupancy rates.
If you are considering purchasing a property for your first Section 8 rental, the median home value in ZIP 27244 is approximately $320,149. This figure represents the typical price you would expect to pay for an existing property suitable for a Section 8 tenant. Keep in mind that this is just an average, and actual prices may vary depending on the condition and location of the property.
Before finalizing your decision to enter the Section 8 market, it is crucial to verify that the property meets the minimum federal housing quality standards, known as the Housing Quality Standards (HQS). These standards ensure that the property is safe, decent, and sanitary for tenants. Compliance with these standards is mandatory for all Section 8 properties and is checked during annual inspections.
To summarize, the FMR of $1,250 in ZIP 27244 means that the government will cover up to this amount for eligible tenants, while the local market rent of $1,685 shows the potential for higher rents outside the program. With a 19.2% share of renters interested in Section 8, there is a notable demand for affordable housing. The median home value of $320,149 gives you an idea of the typical acquisition cost. However, ensuring your property meets HQS standards is essential before proceeding.
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.