Location: Raleigh-Cary, NC | Metro: Raleigh-Cary, 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 | $1,060 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,980 |
| 5 Bedrooms | $2,297 |
| 6 Bedrooms | $2,573 |
| 7 Bedrooms | $2,779 |
| 8 Bedrooms | $2,918 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,500 | $264,279 | 0.57% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 27508 does not work favorably for landlords. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $1280, which is higher than the market rent reported by the Census ACS at $1,128. This discrepancy suggests that landlords may struggle to charge rents high enough to cover costs and profit margins aligned with the FMR.
Acquisition in ZIP 27508 is relatively affordable. The median home value stands at $245,671, making it possible for small-portfolio investors to purchase properties without requiring exorbitant capital. However, the lack of data on days on market (DOM) and the percentage of homes needing price cuts indicates an incomplete picture of the local real estate market dynamics. To make a fully informed decision, additional research into these metrics would be necessary.
Tenant demand in ZIP 27508 is low. With a total population of 2,362, only 13.9% of residents are renters. This implies a limited pool of potential tenants, which could lead to challenges in filling vacancies and maintaining occupancy rates. Landlords should prepare for competition and possibly lower rental yields due to the scarcity of demand.
Verdict: ZIP 27508 presents a challenging investment landscape for landlords and small-portfolio investors. While the acquisition cost is reasonable, the mismatch between the FMR and market rent, combined with a low renter share, suggests that returns might be below expectations. Investors should proceed with caution, focusing on property management efficiencies and exploring ways to attract and retain tenants in a market with limited demand.
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.