Section 8 Fair Market Rent (FMR) for ZIP 27514 - 2027

Location: Durham-Chapel Hill, NC | Metro: Durham-Chapel Hill, NC HUD Metro FMR Area

Investment Score for ZIP 27514

Monthly Rent (2BR)

$1,980

Median Price (2BR)

$273,804

1% Rule

0.72%

Annual Yield

8.68%

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	$1,700
1 Bedroom	$1,760
2 Bedrooms	$1,980
3 Bedrooms	$2,450
4 Bedrooms	$2,820
5 Bedrooms	$3,271
6 Bedrooms	$3,664
7 Bedrooms	$3,957
8 Bedrooms	$4,155

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,760	$146,699	1.2%	B
2BR	$1,980	$273,804	0.72%	D
3BR	$2,450	$554,220	0.44%	F
4BR	$2,820	$888,458	0.32%	F
5BR	$3,271	$1,180,102	0.28%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

32,951

Median Household Income

$92,875

Housing Units

11,699

Renter Percentage

51.4%

Occupancy Rate

88.4%

Renter Occupied

5,323

The ZIP code 27514, located in Chapel Hill, NC, is a vibrant area known for its proximity to the University of North Carolina at Chapel Hill, which significantly influences the local economy and housing market. The presence of the university ensures a steady demand for rental properties, making it an attractive investment opportunity for landlords and small-portfolio investors.

Fair Market Rent (FMR): The FMR for ZIP 27514 is set at $1770 for fiscal year 2024, indicating the maximum amount that a landlord can charge for a property under the Section 8 program.
Market Rent: The Zillow Observed Rent Index (ZORI) shows that the average market rent in the area is $1,611, slightly below the FMR but still reflective of strong rental demand.
Median Home Value: With a median home value of $642,681, ZIP 27514 offers significant equity potential for homeowners and landlords alike.
Renter Share: A substantial 51.4% of the population are renters, suggesting a robust rental market driven by the university community and other residents.
Days on Market (DOM): Properties typically spend only 34 days on the market before being rented, highlighting the brisk pace of the rental market in this area.
Median Income: The median household income in ZIP 27514 is $92,875, providing a solid financial base for tenants to afford higher rents.

The data points clearly indicate that ZIP 27514 presents a favorable environment for rental investments. The high renter share and low DOM suggest a competitive market where demand exceeds supply, particularly for rental properties. Although the ZORI is slightly lower than the FMR, the strong median income supports the ability of tenants to pay higher rents, aligning well with Section 8 rates. This combination of factors makes the area a reliable choice for generating consistent rental income and capital appreciation.

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.