Section 8 Fair Market Rent (FMR) for ZIP 27560 - 2027

Investment Score for ZIP 27560

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	$1,860
1 Bedroom	$1,940
2 Bedrooms	$2,120
3 Bedrooms	$2,640
4 Bedrooms	$3,460
5 Bedrooms	$4,014
6 Bedrooms	$4,496
7 Bedrooms	$4,856
8 Bedrooms	$5,099

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	$2,120	$318,979	0.66%	D
3BR	$2,640	$416,164	0.63%	D
4BR	$3,460	$609,097	0.57%	F
5BR	$4,014	$794,636	0.51%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 27560 (Morrisville, NC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 27560 is set by HUD for 2026, with specific rates for different bedroom sizes. For a two-bedroom apartment, the FMR is $2,230, which represents approximately 22.6% of the median household income of $118,417. This suggests that the rent for a two-bedroom unit is relatively affordable compared to the average income in the area. However, it is important to understand how these FMRs compare to actual rents in Morrisville. Actual rents can be significantly higher than the FMRs. For instance, the Zillow median price for a two-bedroom home is $327,641, indicating a substantial gap between the FMR and the actual rental market. The price-to-FMR ratio of 12.2x implies that the median home value is about 12.2 times the FMR for a two-bedroom unit. This means that landlords who charge rents close to the Zillow median would likely exceed the FMR limits for Section 8 vouchers, thereby constraining the ability of voucher holders to find suitable housing. #### Affordability & Renter Profile Morrisville has a population of 40,792, with 58.9% of residents being renters. This high percentage of renters indicates a strong demand for rental properties in the area. Additionally, the occupancy rate of 91.0% suggests that the rental market is quite tight, with few vacant units available. Given the high median household income, many residents could afford higher rents, but the significant portion of renters might still rely on assistance programs like Section 8. The median household income of $118,417 provides a benchmark for affordability. With 22.6% of this income allocated towards a two-bedroom apartment at the FMR, it leaves a considerable amount of disposable income for other expenses. However, the high renter percentage and tight occupancy rate indicate that there is a strong competition for rental properties, making it challenging for both low-income and middle-income renters to secure housing without financial assistance. #### Investor Angle From an investor’s perspective, the key question is whether the FMRs allow for positive cash flow in Morrisville. Given that the FMR for a two-bedroom apartment is $2,230, we need to consider the typical costs associated with owning and managing a rental property. These costs include mortgage payments, property taxes, insurance, maintenance, and management fees. Assuming a conservative estimate where the total monthly cost for a landlord is around $1,800 (including all expenses), the difference between the FMR ($2,230) and the total cost ($1,800) would result in a positive cash flow of $430 per month. This scenario assumes that the landlord can find tenants willing to pay the FMR, which may not always be the case due to the high competition for rental properties. The investment grade for this ZIP code can be assessed based on the balance between demand and supply, as well as the potential for positive cash flow. Given the high renter percentage and tight occupancy rate, the demand appears to be robust. However, the challenge lies in finding properties that can be rented out at the FMR while maintaining profitability. #### Specific Actionable Insights 1. **Focus on Properties Below FMR**: Investors should focus on acquiring properties that can be rented out below the FMR, particularly those that can be rented for around $1,800-$2,000 per month. This range allows for a margin above the typical total monthly costs, ensuring positive cash flow. For example, a two-bedroom unit priced at $1,900 would provide a cash flow of $100 above the estimated total monthly costs. 2. **Consider Multi-Family Units**: Given the high renter percentage, multi-family units such as duplexes or small apartment buildings might offer better opportunities for positive cash flow. These units can spread the fixed costs over multiple units, potentially increasing the overall profitability. For instance, a three-bedroom unit priced at $2,790 would be within the FMR limit and could be more attractive to families seeking larger living spaces. 3. **Target Neighborhoods with Lower Property Values**: While the Zillow median price for a two-bedroom home is $327,641, targeting neighborhoods with lower property values could help investors acquire properties at a more affordable price point. This strategy would reduce the initial capital investment and the ongoing mortgage payments, thereby improving the chances of achieving positive cash flow even if rents are set at the FMR. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 27560 (Morrisville, NC) is to **Buy** with caution. The high renter percentage and tight occupancy rate suggest a strong demand for rental properties, but the challenge lies in finding properties that can be rented out at the FMR while maintaining profitability. Investors should target properties with lower acquisition costs and aim to keep rental prices slightly below the FMR to ensure positive cash flow. Additionally, focusing on multi-family units could provide a better return on investment due to the economies of scale. In summary, Morrisville presents a viable opportunity for Section 8-focused investors, but careful selection of properties and strategic pricing are crucial to success.

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.