Section 8 Fair Market Rent (FMR) for ZIP 27502 - 2027

Investment Score for ZIP 27502

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,820
1 Bedroom	$1,890
2 Bedrooms	$2,060
3 Bedrooms	$2,570
4 Bedrooms	$3,440
5 Bedrooms	$3,990
6 Bedrooms	$4,469
7 Bedrooms	$4,827
8 Bedrooms	$5,068

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,060	$321,187	0.64%	D
3BR	$2,570	$452,032	0.57%	F
4BR	$3,440	$599,619	0.57%	F
5BR	$3,990	$829,009	0.48%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 27502 (Apex, NC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 27502 in Apex, North Carolina, for 2026 indicate that the cost for a two-bedroom apartment is set at $2,140 per month. This figure represents approximately 17.8% of the median household income in the area, which is $143,922. However, the actual rental market for two-bedroom apartments is significantly higher, with Zillow reporting a median price of $325,710 for home purchases, translating into a rental price-to-FMR ratio of 12.7x. This means that the actual rent for a two-bedroom unit would be around $27,288 per month if it were to match the price-to-FMR ratio. Clearly, this is unrealistic, but it highlights the significant gap between the FMR and the actual market rates. For voucher holders, this implies that they will have difficulty finding units that fall within the FMR guidelines. The constraints are particularly evident in the higher-end rental market where landlords might not accept vouchers due to the disparity between the FMR and market rents. #### Affordability & Renter Profile Given the high median household income of $143,922, the population of Apex is generally well-off. Only 18.4% of the residents are renters, indicating a relatively low demand for rental properties compared to owner-occupied homes. With a high occupancy rate of 95.5%, the rental market is tight, suggesting that there is little excess supply of rental units. The median income level is such that even those who do rent can afford higher-priced units. The FMR for a two-bedroom unit is only 17.8% of the median income, which is quite low. This indicates that the majority of renters can pay more than the FMR, making it less likely that landlords will accept Section 8 vouchers. The high income levels also mean that many residents can afford to purchase homes rather than rent, further tightening the rental market. #### Investor Angle From an investor’s perspective, the ZIP code 27502 is challenging when focusing on Section 8 vouchers. The FMR for a two-bedroom unit is $2,140, which is significantly lower than what the market would typically bear. To determine if this is cash-flow positive, we need to consider the typical rental rates and the costs associated with owning and maintaining a property. Assuming a typical rental rate of around $2,700 for a two-bedroom unit (based on the price-to-FMR ratio), an investor could potentially achieve cash-flow positivity. However, the challenge lies in finding landlords willing to accept Section 8 vouchers given the high market rates. Additionally, the cost of maintenance, property taxes, insurance, and other expenses must be factored in. If these costs exceed the FMR, then the investment would not be cash-flow positive. The investment grade for this ZIP code is moderate to low for Section 8-focused investors. The primary constraint is the willingness of landlords to accept vouchers, which is likely to be limited due to the high market rates. Investors should carefully evaluate the potential for long-term appreciation and the broader economic trends in the area before committing to a Section 8-focused investment strategy. #### Specific Actionable Insights 1. **Focus on Lower-Rent Units**: Given the high market rates, investors should focus on acquiring properties that can be rented out at or near the FMR. This includes smaller units like one-bedroom or studio apartments, which have FMRs of $1,950 and $1,860 respectively. These units are more likely to be accepted by voucher holders and may offer better cash flow opportunities. 2. **Consider Long-Term Appreciation**: While the immediate cash flow may be challenging, the high median household income and low vacancy rate suggest strong long-term appreciation potential. Investors should consider the value of their property over time and the possibility of transitioning to a non-voucher tenant base as market conditions change. 3. **Engage with Local Real Estate Agents**: To understand the local rental market dynamics better, investors should engage with local real estate agents who can provide insights into landlord preferences and tenant profiles. This can help in identifying areas where there might be a higher acceptance rate for Section 8 vouchers. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 27502 is to **Skip**. The high market rates and low percentage of renters make it difficult to find properties that can be rented out at or near the FMR. Additionally, the tight rental market suggests that landlords are less likely to accept vouchers due to the higher demand for market-rate rentals. Investors should look for areas with a higher percentage of renters and lower median incomes to achieve better cash flow and acceptance rates for Section 8 vouchers.

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.