Section 8 Fair Market Rent (FMR) for ZIP 27603 - 2027

Investment Score for ZIP 27603

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	$1,410
1 Bedroom	$1,470
2 Bedrooms	$1,600
3 Bedrooms	$1,990
4 Bedrooms	$2,670
5 Bedrooms	$3,097
6 Bedrooms	$3,469
7 Bedrooms	$3,747
8 Bedrooms	$3,934

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
1BR	$1,470	$329,646	0.45%	F
2BR	$1,600	$314,624	0.51%	F
3BR	$1,990	$384,564	0.52%	F
4BR	$2,670	$554,789	0.48%	F
5BR	$3,097	$626,674	0.49%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 27603 (Raleigh, NC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 27603 in Raleigh, NC, is set by HUD for 2026. For a two-bedroom apartment, the FMR is $1,670 per month. However, the actual rental market in this area is significantly higher. According to Zillow, the median price for a two-bedroom home is $317,841, which translates to a monthly mortgage payment of approximately $1,400 based on typical financing terms. When combined with property taxes, insurance, and maintenance costs, the total monthly cost can easily exceed the FMR. This creates a significant constraint for voucher holders who must find housing that fits within the FMR limits. Given the high actual rent prices, landlords may be hesitant to accept vouchers due to the potential financial shortfall. #### Affordability & Renter Profile ZIP code 27603 has a population of 53,972, with 38.6% being renters. The occupancy rate stands at 90.5%, indicating a relatively tight rental market. The median household income is $90,484, and the FMR for a two-bedroom apartment represents about 22.1% of this income. This suggests that while the area is moderately affluent, there is still a segment of the population that relies heavily on affordable housing options. The price-to-FMR ratio of 15.9x indicates that the market is very expensive relative to the FMR, making it challenging for low-income renters to find suitable housing without assistance. #### Investor Angle From an investor perspective, the ZIP code 27603 presents mixed opportunities. The FMR for a two-bedroom unit is $1,670, but the actual median rent price is much higher. To determine if this ZIP is cash-flow positive at FMR, we need to consider the typical expenses associated with owning a rental property. Assuming a mortgage payment of around $1,400, plus an additional $200 for property taxes, $100 for insurance, and $100 for maintenance, the total monthly expenses would be approximately $1,800. This exceeds the FMR of $1,670, suggesting that landlords accepting Section 8 vouchers would likely incur a loss unless they can secure other subsidies or manage their properties efficiently. The investment grade for this ZIP code would be considered low due to the high price-to-FMR ratio and the likelihood of negative cash flow when only relying on FMR payments. Investors should carefully evaluate the potential for additional revenue streams or government subsidies before considering this market. #### Specific Actionable Insights 1. **Seek Additional Revenue Streams**: Since the FMR is significantly lower than the actual rent prices, landlords should look for ways to supplement their income. This could include charging for utilities, parking, or other amenities, or seeking state and local subsidies that might help bridge the gap between FMR and actual costs. 2. **Focus on Smaller Units**: The FMR for smaller units (0BR and 1BR) is lower, at $1,450 and $1,520 respectively. These units may be more financially viable for landlords accepting Section 8 vouchers. Additionally, the demand for smaller units tends to be higher in urban areas like Raleigh, where space is at a premium. 3. **Consider Strategic Locations**: Within ZIP code 27603, certain neighborhoods may have lower rent prices due to factors such as proximity to public transportation, schools, or employment centers. Landlords should research these areas to identify properties that are more likely to fit within the FMR guidelines. #### Bottom Line Given the high price-to-FMR ratio and the tight rental market, the recommendation for Section 8-focused investors in ZIP code 27603 is to **Skip**. The financial constraints and limited availability of affordable housing make it difficult to achieve positive cash flow solely through FMR payments. Investors should look for markets with a lower price-to-FMR ratio or consider other forms of government assistance to offset the financial risks. --- This analysis provides a clear picture of the challenges faced by both renters and landlords in ZIP code 27603, particularly those involved with Section 8 vouchers. The high cost of living and limited supply of affordable housing suggest that this area may not be ideal for investors focusing exclusively on Section 8 properties.

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.