Section 8 Fair Market Rent (FMR) for ZIP 27604 - 2027

Investment Score for ZIP 27604

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	$1,430
1 Bedroom	$1,490
2 Bedrooms	$1,620
3 Bedrooms	$2,020
4 Bedrooms	$2,710
5 Bedrooms	$3,144
6 Bedrooms	$3,521
7 Bedrooms	$3,803
8 Bedrooms	$3,993

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	$1,490	$208,174	0.72%	D
2BR	$1,620	$243,955	0.66%	D
3BR	$2,020	$330,702	0.61%	D
4BR	$2,710	$403,814	0.67%	D
5BR	$3,144	$449,094	0.7%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 27604 (Raleigh, NC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 27604 in Raleigh, NC, for 2026 indicate that a two-bedroom unit should rent for $1720. However, the Zillow median price for a two-bedroom property is significantly higher at $249,602, which translates to a price-to-FMR ratio of 12.1x. This means that the actual rental prices in the area are likely much higher than the FMR, making it challenging for Section 8 voucher holders to find affordable housing. The voucher program typically covers up to the FMR, so tenants would need to pay the difference out-of-pocket. For a two-bedroom unit, this could mean paying over $770 more per month than what their voucher covers, which is a significant financial burden given the median household income of $70,375. #### Affordability & Renter Profile ZIP 27604 has a population of 44,514, with 45.2% of residents being renters. The occupancy rate stands at 88.2%, indicating a relatively tight market where most units are occupied. Given that 29.3% of the median household income is required to cover the FMR for a two-bedroom unit, it suggests that the area is moderately affordable for middle-income families. However, the high price-to-FMR ratio indicates that the market is skewed towards higher-end rentals, making it difficult for lower-income households to secure housing without additional financial assistance. #### Investor Angle From an investor perspective, the ZIP code 27604 offers limited opportunities for cash-flow positive investments based on the FMR. The FMR for a two-bedroom unit is $1720, but the actual rental market is likely to demand much higher rates due to the high price-to-FMR ratio. If an investor were to purchase a two-bedroom property at the Zillow median price of $249,602 and rent it out at the FMR, they would face significant challenges in covering mortgage payments, maintenance costs, and other expenses. Therefore, the investment grade for properties in this ZIP code, especially those targeting Section 8 voucher holders, is low. #### Specific Actionable Insights 1. **Focus on Lower-Rent Properties**: Investors interested in Section 8 vouchers should consider purchasing one-bedroom or studio apartments, where the FMR is $1570 and $1500 respectively. These units are more likely to be rented by voucher holders since the gap between FMR and actual rental prices is smaller compared to larger units. 2. **Consider Areas with Higher FMRs**: While 27604 has a high price-to-FMR ratio, neighboring ZIP codes might offer better opportunities for cash-flow positive investments. Investors should explore areas where the FMR is closer to the actual rental prices, allowing them to maximize returns while still catering to Section 8 voucher holders. 3. **Develop Relationships with Local Agencies**: Given the tight market and high competition for affordable housing, developing strong relationships with local housing authorities can provide a competitive edge. This includes understanding the voucher process, staying updated on policy changes, and potentially securing a steady stream of tenants through these channels. #### Bottom Line For Section 8-focused investors, the ZIP code 27604 presents a challenging environment due to the high price-to-FMR ratio and limited affordability for voucher holders. The recommendation is to **skip** this ZIP code unless you are willing to focus on lower-rent properties or develop a robust network with local agencies to mitigate risks. The investment grade is low, and the potential for cash-flow positive properties is minimal given the current market dynamics.

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.