Section 8 Fair Market Rent (FMR) for ZIP 27602 - 2027
Location: Raleigh-Cary, NC | Metro: Raleigh-Cary, NC MSA
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $1,530 |
| 1 Bedroom | $1,600 |
| 2 Bedrooms | $1,740 |
| 3 Bedrooms | $2,170 |
| 4 Bedrooms | $2,910 |
| 5 Bedrooms | $3,376 |
| 6 Bedrooms | $3,781 |
| 7 Bedrooms | $4,083 |
| 8 Bedrooms | $4,287 |
To determine if you should buy in ZIP code 27602 (Unknown, NC) for Section 8 investment, follow this decision tree:
- 1) Does the Fair Market Rent (FMR) of $1700 cover debt service on a property?
- Yes: If the FMR can comfortably cover your mortgage payments, property taxes, insurance, and maintenance costs, then proceed to the next question.
- No: Do not invest. The FMR does not provide sufficient income to support the financial obligations of owning a property in this area.
- 2) How does the market rent compare to the FMR?
- Above FMR: Market rents exceed the FMR. This indicates strong demand for rental properties, but also means that Section 8 tenants might find it challenging to afford non-subsidized housing, leading to potential difficulties in filling vacancies.
- At or Below FMR: Market rents are aligned with or lower than the FMR. This suggests that Section 8 tenants can easily find housing within their subsidy limits, making it a viable option for landlords willing to participate in the program.
- 3) Is there enough demand from renters?
- It depends: The percentage of renters and the days on the market (DOM) are critical factors. If the rental rate is high and the DOM is low, there is likely sufficient demand. However, without specific percentages and DOM figures, it's difficult to make a definitive recommendation. Ensure you research local rental trends and vacancy rates to make an informed decision.
The key to success in Section 8 investments lies in aligning the FMR with your debt service requirements and understanding the local rental market dynamics. If the FMR adequately covers your expenses and market rents are competitive with subsidies, and there is robust demand from renters, ZIP 27602 could be a profitable location for your investment.
Data Sources: FMR data from HUD (2027).
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.