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 27256, located in the Durham-Chapel Hill, NC HUD Metro FMR Area, serves as a strategic component in a Section 8 portfolio due to its characteristics as a cash-flow anchor. The Fair Market Rent (FMR) for ZIP 27256 in fiscal year 2024 is set at $1250, which is the benchmark rental rate for one-bedroom units under the Section 8 program. This figure is critical because it directly influences the amount of rental subsidy that landlords can receive.
Despite the lack of specific market rental rates and median home values for ZIP 27256, the FMR of $1250 provides a reliable floor for rental income, ensuring steady cash flow for landlords who participate in the Section 8 program. This stability is particularly valuable given the uncertainties in the broader real estate market. Landlords can count on receiving a fixed amount per month, adjusted annually according to the HUD guidelines, which helps in budgeting and financial planning.
ZIP 27256 does not present itself as an appreciation play due to the absence of data indicating significant growth potential or reduced days on market (DOM). Similarly, it cannot be categorized as a diversifier since the median income data is unavailable, and the renter share is only 0.0%, suggesting a very low percentage of the population relies on rental subsidies. This makes it less suitable for broadening a portfolio's risk profile through varied tenant demographics.
In conclusion, ZIP 27256 is best positioned as a cash-flow anchor within a Section 8 portfolio strategy. Landlords can rely on the guaranteed income from the $1250 FMR, providing a stable source of revenue amidst fluctuating market conditions. This strategy ensures predictability and reduces financial risk, aligning well with the goals of small-portfolio investors seeking consistent returns.
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.