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 | $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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,540 | $252,488 | 0.61% | D |
| 3BR | $1,910 | $335,417 | 0.57% | F |
| 4BR | $2,280 | $412,906 | 0.55% | F |
| 5BR | $2,645 | $454,081 | 0.58% | F |
U.S. Census Bureau data (2024)
The ZIP code 27302 is situated in the heart of Mebane, North Carolina, a town characterized by a diverse mix of residential areas. With a total population of 35,418, it is a moderately sized community where nearly 30.6% of residents are renters. The median household income in this area stands at $79,819, indicating a middle-class demographic. Meanwhile, the median home value is $353,188, reflecting a stable housing market with a balance between affordability and value.
Turning to the economic realities of renting in ZIP 27302, the Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,360. This figure represents the government's benchmark for affordable rental housing and is used to determine the payment standards for the Housing Choice Voucher Program, commonly known as Section 8. In contrast, the market rent, as measured by the Zillow Observed Rent Index (ZORI), is $1,511. This suggests that market rents slightly exceed the FMR, creating an opportunity for landlords who can manage properties efficiently to capture the difference.
The discrepancy between the FMR and the market rent indicates that ZIP 27302 may be better suited for a hands-on value-add buyer rather than a hands-off voucher operator. For those willing to actively manage their properties and improve them to command higher rents, there is potential to earn above the FMR. However, for landlords looking to simply collect Section 8 payments without additional effort or investment, the area offers a stable but modest return. The key to success in this market lies in understanding both the local demographics and the nuances of property management.
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.