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 | $1,590 |
| 1 Bedroom | $1,650 |
| 2 Bedrooms | $1,800 |
| 3 Bedrooms | $2,240 |
| 4 Bedrooms | $3,010 |
| 5 Bedrooms | $3,492 |
| 6 Bedrooms | $3,911 |
| 7 Bedrooms | $4,224 |
| 8 Bedrooms | $4,435 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,240 | $592,368 | 0.38% | F |
| 4BR | $3,010 | $754,367 | 0.4% | F |
| 5BR | $3,492 | $961,663 | 0.36% | F |
U.S. Census Bureau data (2024)
ZIP code 27518, located within the Raleigh-Cary, NC MSA, presents a unique profile when compared to typical ZIP codes in this metropolitan area. The Fair Market Rent (FMR) for 27518 is set at $1870 for fiscal year 2024, which is higher than the market rent of $1,490. This suggests that while the government benchmark for rental affordability is relatively high, actual rents might be more competitive.
The median home value in 27518 stands at $736,970, indicating a more expensive housing market relative to other areas in the Raleigh-Cary MSA. However, the renter share of 33.9% is noteworthy. Typically, a higher renter share can signal a greater demand for rental properties, which could benefit landlords and small-portfolio investors.
To determine if 27518 is a value pocket, mid-tier neighborhood, or a premium sub-market, we must consider the interplay between FMR, market rent, and home values. With an FMR above the market rent and high home values, 27518 leans towards being a premium sub-market. The disparity between the FMR and the market rent could suggest that rental properties in this ZIP code are potentially undervalued or that there's room for price increases without exceeding the FMR threshold.
The high renter share in conjunction with below-metro average rental prices but above-average home values does not necessarily indicate a Section 8 sweet spot. For such a designation, typically lower home values and rental prices would align with a high renter share. Nevertheless, the combination of factors could still present opportunities for landlords looking to attract tenants eligible for Section 8 subsidies, especially those who might find the market rent more affordable than the FMR.
In summary, 27518 appears to be a premium sub-market within the Raleigh-Cary MSA, characterized by high home values and a significant renter population. Landlords and investors should focus on the potential for leveraging the FMR to their advantage while considering the broader rental market dynamics.
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.