Location: Durham-Chapel Hill, 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,540 | $372,923 | 0.41% | F |
| 3BR | $1,910 | $513,341 | 0.37% | F |
| 4BR | $2,280 | $805,577 | 0.28% | F |
| 5BR | $2,645 | $897,875 | 0.29% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 27312, which encompasses Pittsboro, NC, within the Durham-Chapel Hill, NC HUD Metro FMR Area, does not favor landlords. The Fair Market Rent (FMR) set at $1260 for the fiscal year 2024 contrasts sharply with the market's Zero Occupancy Rate Index (ZORI), which stands at $1838. This discrepancy means that landlords relying on FMR to set their rental prices will be significantly below the market rate, leading to potential financial losses.
Acquisition in this area is relatively affordable for investors looking to purchase properties. With a median home value of $562,584, coupled with a 29-day Days on Market (DOM) and a mere 0.2% of homes experiencing price cuts, it suggests that the housing market is stable and homes sell quickly without significant reductions. This makes it an attractive region for acquiring properties without the risk of prolonged listings or needing to lower asking prices.
Tenant demand is present but limited. The ZIP code has a total population of 23,341, with 19.5% of residents being renters. This indicates that while there is a segment of the population seeking rental properties, it is not overwhelming, suggesting that competition among landlords could be fierce to attract tenants.
In summary, ZIP 27312 presents a mixed picture for landlords and small-portfolio investors. While the acquisition of properties is financially feasible due to quick sales and stable pricing, the rent math does not work in favor of landlords when compared to the ZORI. Tenant demand exists but is not robust enough to offset the disparity between FMR and market rents. Therefore, landlords must carefully consider their pricing strategies and possibly diversify their investment portfolios to include areas with higher renter shares or adjust their expectations regarding rental income.
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.