Section 8 Fair Market Rent (FMR) for ZIP 27513 - 2027

Investment Score for ZIP 27513

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	$1,620
1 Bedroom	$1,690
2 Bedrooms	$1,840
3 Bedrooms	$2,290
4 Bedrooms	$3,080
5 Bedrooms	$3,573
6 Bedrooms	$4,002
7 Bedrooms	$4,322
8 Bedrooms	$4,538

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	$1,840	$304,665	0.6%	D
3BR	$2,290	$465,131	0.49%	F
4BR	$3,080	$661,719	0.47%	F
5BR	$3,573	$986,764	0.36%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 27513 (Cary, NC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 27513, as per the 2026 data, is set at $1920 for a two-bedroom unit. This amount represents 18.9% of the median household income of $121,989 in the area. However, the actual rental market in Cary is significantly higher. The Zillow median price for a two-bedroom home is $306,864, which translates to a monthly rent of approximately $1330 based on typical mortgage payments. Given that the FMR is only $1920, it suggests that the actual rental rates are much higher, likely around $2,500 to $3,000 for a two-bedroom unit. This means that the FMR is far below the actual market rents, creating significant constraints for Section 8 voucher holders. They would struggle to find units that accept their vouchers and fall within the FMR limits. #### Affordability & Renter Profile With a population of 46,979 and a renter percentage of 36.1%, there are approximately 16,962 renters in ZIP 27513. The occupancy rate of 93.8% indicates a very tight rental market, where most available units are occupied. The high median household income of $121,989 suggests that the majority of residents can afford higher rents, but the 36.1% of renters might include those who are more financially constrained. The price-to-FMR ratio of 13.3x for a two-bedroom unit highlights the extreme disparity between the actual market value and the FMR, making it challenging for lower-income individuals to find affordable housing. This tight market and high price-to-FMR ratio suggest that the demand for rental properties is strong, but affordability remains a critical issue for many residents. #### Investor Angle From an investor perspective, the ZIP code 27513 is likely to be cash-flow negative at the FMR levels. For instance, if an investor purchases a two-bedroom property at the Zillow median price of $306,864, they would need to charge around $1330 per month to break even on a mortgage payment. However, the FMR for a two-bedroom unit is only $1920, which is well below the break-even point. Therefore, landlords who rely solely on FMR would face financial challenges unless they have other sources of income or subsidies. The investment grade for this ZIP code would be low due to the mismatch between the FMR and the actual market rents, indicating that the returns from Section 8 tenants alone would not cover the costs of ownership. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider focusing on smaller units such as one-bedroom or studio apartments. The FMR for a one-bedroom unit is $1750, which is still below the likely market rent but closer to the break-even point. This strategy could help mitigate some of the financial risks associated with larger units. 2. **Seek Additional Subsidies**: Investors should explore additional subsidies or programs that can complement the Section 8 vouchers. For example, the Housing Choice Voucher Program (HCVP) often has waiting lists, so finding alternative government assistance or community programs could provide a more stable income stream. 3. **Consider Mixed-Income Developments**: Developing mixed-income housing projects could be a viable option. By offering a mix of market-rate and subsidized units, investors can balance the financial impact of lower rents from Section 8 tenants with higher rents from market-rate tenants. This approach would also align with the broader economic profile of the area, where many residents can afford higher rents. #### Bottom Line For Section 8-focused investors, the ZIP code 27513 presents significant challenges due to the high price-to-FMR ratio and the tight rental market. The recommendation is to **skip** this ZIP code for now, as the financial dynamics make it difficult to achieve positive cash flow without additional subsidies or creative development strategies. If investors decide to enter this market, they should focus on smaller units and seek out complementary programs to enhance their financial stability. --- This analysis provides a detailed overview of the rental market dynamics in ZIP code 27513, highlighting the challenges and opportunities for Section 8-focused real estate investments. The data clearly shows that the actual rental market is far above the FMR, making it a tough environment for voucher holders and investors alike.

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.