Section 8 Fair Market Rent (FMR) for ZIP 27529 - 2027

Investment Score for ZIP 27529

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	$1,390
1 Bedroom	$1,450
2 Bedrooms	$1,580
3 Bedrooms	$1,970
4 Bedrooms	$2,640
5 Bedrooms	$3,062
6 Bedrooms	$3,429
7 Bedrooms	$3,703
8 Bedrooms	$3,888

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	$1,580	$239,795	0.66%	D
3BR	$1,970	$348,374	0.57%	F
4BR	$2,640	$450,199	0.59%	F
5BR	$3,062	$522,058	0.59%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 27529 (Garner, NC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 27529 is set by HUD for the year 2026. For a two-bedroom unit, the FMR is $1660 per month. This amount represents 23.2% of the median household income in Garner, which stands at $85,716. However, the actual rent levels in Garner are significantly higher than the FMR. The Zillow median price for a two-bedroom home is $244,024, which translates to a monthly mortgage payment that would be far above the FMR. The price-to-FMR ratio for a two-bedroom unit is 12.3 times, indicating that the actual rental market is much more expensive than the FMR suggests. This creates a significant constraint for voucher holders, who may struggle to find units that accept their vouchers due to the high cost of housing relative to the FMR. Landlords might prefer higher-paying tenants over those using Section 8 vouchers, especially if the rent they can charge exceeds the FMR. #### Affordability & Renter Profile In Garner, 28.9% of the population are renters, which means there are approximately 15,998 households renting. With a median household income of $85,716, the average renter must allocate a substantial portion of their income to housing. For instance, a two-bedroom unit at the FMR of $1660 would consume about 23.2% of the median income, which is already a considerable share. Given the occupancy rate of 94.3%, it is clear that the rental market in Garner is relatively tight. There is little room for vacancy, suggesting that demand is strong and supply is limited. This tight market could lead to upward pressure on rents, making it even harder for low-income renters to find affordable housing. #### Investor Angle From an investor perspective, the ZIP code 27529 presents both opportunities and challenges. The FMRs provide a baseline for what the government considers a fair rent for various unit sizes. However, the actual rental market is much more expensive, with a price-to-FMR ratio of 12.3 times for a two-bedroom unit. To determine whether this ZIP code is cash-flow positive at the FMR, we need to consider the typical mortgage payments and expenses associated with owning a rental property. If a two-bedroom unit costs $244,024, assuming a 30-year fixed-rate mortgage at 4.5%, the monthly mortgage payment would be around $1185. Adding property taxes, insurance, maintenance, and other expenses, the total monthly cost could easily exceed $1660. Therefore, relying solely on the FMR to cover these costs would likely result in negative cash flow for investors. The investment grade for properties in this ZIP code is mixed. While the strong demand and high occupancy rates suggest a stable market, the gap between FMR and actual rents means that properties rented at FMR may not be profitable. Investors should carefully evaluate their costs and consider whether they can attract tenants willing to pay above the FMR or whether they can manage the property efficiently to keep costs down. #### Specific Actionable Insights 1. **Focus on Larger Units**: Given the high price-to-FMR ratio, investors might want to focus on larger units such as three-bedroom or four-bedroom homes. These units have higher FMRs ($2080 and $2780 respectively), which could better cover the costs of ownership. Additionally, larger units may be more attractive to families and could command higher rents in the private market. 2. **Consider Location-Specific Strategies**: Within Garner, certain neighborhoods may have lower rental prices due to factors like proximity to amenities, public transportation, or employment centers. Identifying these areas could help investors find properties that are closer to the FMR, potentially improving cash flow. 3. **Explore Mixed-Income Developments**: Developing or acquiring properties that cater to a mix of income levels could be a viable strategy. By offering some units at FMR and others at market rates, investors can balance the financial impact and still serve the needs of low-income renters. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 27529 is to **Skip**. The high price-to-FMR ratio and the tight rental market make it challenging to achieve positive cash flow when renting at the FMR. Investors looking to enter this market should consider alternative strategies, such as focusing on larger units or exploring mixed-income developments, but the overall environment is not favorable for purely Section 8 investments.

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.