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 | $1,540 |
| 1 Bedroom | $1,610 |
| 2 Bedrooms | $1,750 |
| 3 Bedrooms | $2,180 |
| 4 Bedrooms | $2,930 |
| 5 Bedrooms | $3,399 |
| 6 Bedrooms | $3,807 |
| 7 Bedrooms | $4,112 |
| 8 Bedrooms | $4,318 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,610 | $351,054 | 0.46% | F |
| 2BR | $1,750 | $440,330 | 0.4% | F |
| 3BR | $2,180 | $560,144 | 0.39% | F |
| 4BR | $2,930 | $751,813 | 0.39% | F |
U.S. Census Bureau data (2024)
The ZIP code 27601 in Raleigh, NC is characterized by a relatively small population of 9,905 residents, with a significant portion, 74.0%, being renters. This indicates a strong demand for rental properties in the area. The median household income stands at $71,350, suggesting a middle-class community capable of supporting a range of rental options. The median home value in the area is notably high at $500,239, reflecting the overall property values and the potential for investment opportunities.
From an economic standpoint, the Fair Market Rent (FMR) for ZIP 27601 for fiscal year 2024 is set at $1,690. In comparison, the market rent, as measured by Zillow's ZORI (Zillow Observed Rent Index), is slightly higher at $1,735. This narrow gap between the FMR and market rent suggests that properties in this ZIP code can be effectively managed under a Section 8 program while still offering competitive rates to attract tenants.
Considering the characteristics of the ZIP code and the economic data, it would be suitable for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the high percentage of renters and reasonable FMR indicate a stable environment where properties can be easily leased through the Section 8 program without much hassle. On the other hand, for hands-on value-add buyers, the slight premium in market rent over FMR presents an opportunity to improve properties and potentially command higher rents outside of the voucher program, thereby increasing the profitability of their investments.
In conclusion, ZIP 27601 offers a balanced approach for Section 8 investors, catering to both passive and active management styles. Landlords and small-portfolio investors can expect a steady stream of tenants and a market that supports both subsidized and non-subsidized rentals.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.