Location: Durham-Chapel Hill, NC | Metro: Durham-Chapel Hill, NC HUD Metro FMR Area
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 | $1,620 |
| 1 Bedroom | $1,680 |
| 2 Bedrooms | $1,890 |
| 3 Bedrooms | $2,340 |
| 4 Bedrooms | $2,690 |
| 5 Bedrooms | $3,120 |
| 6 Bedrooms | $3,494 |
| 7 Bedrooms | $3,774 |
| 8 Bedrooms | $3,963 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,680 | $307,626 | 0.55% | F |
| 2BR | $1,890 | $321,721 | 0.59% | F |
| 3BR | $2,340 | $577,487 | 0.41% | F |
| 4BR | $2,690 | $874,374 | 0.31% | F |
| 5BR | $3,120 | $1,124,049 | 0.28% | F |
U.S. Census Bureau data (2024)
The ZIP code 27517, located in Chapel Hill, North Carolina, stands out within Orange County due to its unique demographic and economic characteristics. With a population of 29,564 residents, it has a rental rate of 32.6%, indicating a significant portion of the community relies on leased properties. The median income in this area is $128,683, which is notably higher than the national average, suggesting a relatively affluent population. Additionally, the median home value of $674,693 reflects the high cost of homeownership in the region.
Moving to the specifics of Section 8 voucher economics, the Fair Market Rent (FMR) for ZIP 27517 in fiscal year 2024 is set at $1,920. This figure is above the market rent, represented by the Zillow Rent Index (ZORI), which stands at $1,666. This means that landlords accepting Section 8 vouchers can expect slightly higher rents compared to the typical market rates, providing an incentive for participation in the program.
The data signature for ZIP 27517 reads as stable. The high median income and median home value suggest a strong local economy with little indication of volatility. Furthermore, the slight premium in FMR over ZORI indicates a balanced approach to supporting affordable housing without disrupting the established rental market. Landlords and small-portfolio investors should find this environment conducive to long-term stability and predictable returns.
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.