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 | $1,680 |
| 1 Bedroom | $1,750 |
| 2 Bedrooms | $1,900 |
| 3 Bedrooms | $2,370 |
| 4 Bedrooms | $3,180 |
| 5 Bedrooms | $3,689 |
| 6 Bedrooms | $4,132 |
| 7 Bedrooms | $4,463 |
| 8 Bedrooms | $4,686 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,900 | $290,014 | 0.66% | D |
| 3BR | $2,370 | $350,598 | 0.68% | D |
| 4BR | $3,180 | $441,602 | 0.72% | D |
| 5BR | $3,689 | $482,496 | 0.76% | D |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 27527 in Clayton, North Carolina, reveals that the Fair Market Rent (FMR) set by HUD for FY 2024 is $1700, while the actual market rent, as measured by Zillow's ZORI, stands at $1,809. This indicates that voucher tenants will typically cashflow at the FMR rate, but landlords will experience marginal profitability. The difference of $109 between the FMR and the ZORI suggests that landlords may need to focus on premium units or areas with slightly lower market rents to ensure a positive cashflow position.
To understand the broader housing context, consider the median home value in ZIP 27527, which is $395,743. Using this figure, we can calculate a rent-to-price ratio of approximately 0.46%, indicating a relatively low rental yield compared to property values. This metric is important for investors as it highlights the trade-off between owning a higher-value property and receiving lower rental income relative to the purchase price.
The rental market dynamics also play a role in investment decisions. The median Days on Market (DOM) for properties in this area is 51 days, which is relatively quick, suggesting strong demand for rentals. Additionally, the price-cut share is a mere 0.3%, indicating that landlords are generally able to maintain their asking prices without significant concessions. These factors contribute to the overall stability of the rental market, making it less risky for investors who are looking for consistent cashflows rather than rapid appreciation.
In conclusion, the strongest investor angle in ZIP 27527 is stability. With a robust rental demand and minimal need for price adjustments, investors can expect steady cashflows and predictable returns over time.
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.