Location: Raleigh-Cary, NC | Metro: Raleigh-Cary, NC MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,060 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,980 |
| 5 Bedrooms | $2,297 |
| 6 Bedrooms | $2,573 |
| 7 Bedrooms | $2,779 |
| 8 Bedrooms | $2,918 |
U.S. Census Bureau data (2024)
The ZIP code 27568 presents a dynamic rental market influenced by the interplay between the Fair Market Rent (FMR) and the actual market rent. The FMR set at $1280 for fiscal year 2024 indicates a benchmark established by HUD, which is significantly higher than the average market rent reported at $791 according to the Census ACS data. This disparity suggests that the actual rental prices are lower than the fair market assessment, hinting at a potential oversupply of rental units relative to demand.
The 19.0% renter share in ZIP 27568 is notably low compared to national averages, which often exceed 30%. This statistic implies that a substantial portion of residents own their homes, reducing immediate pressure on the rental market. However, it also means that changes in the economy could shift more residents towards renting, creating latent demand. Landlords and small-portfolio investors should monitor broader economic trends, as shifts towards renting can quickly alter the balance of supply and demand.
The lack of data on price-cut share and days on market (DOM) prevents a detailed analysis of how aggressively landlords are competing for tenants. Similarly, without a median home value, assessing the overall financial health and stability of homeownership in the area is challenging. Nonetheless, the gap between FMR and market rent provides insight into the current state of the rental market, indicating that it may be less competitive compared to areas where market rents approach or exceed FMR levels.
In ZIP 27568, the rental market appears to be characterized by a relatively stable equilibrium, with rental prices being considerably below the fair market rate. This situation can be advantageous for landlords who might benefit from lower competition but must also consider the potential for increased demand if economic conditions change, pushing more individuals towards renting. For small-portfolio investors, understanding these dynamics is crucial for making informed decisions about property investments and management strategies.
Data Sources: FMR data from HUD (2027). 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.