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 | $1,610 |
| 1 Bedroom | $1,680 |
| 2 Bedrooms | $1,830 |
| 3 Bedrooms | $2,280 |
| 4 Bedrooms | $3,060 |
| 5 Bedrooms | $3,550 |
| 6 Bedrooms | $3,976 |
| 7 Bedrooms | $4,294 |
| 8 Bedrooms | $4,509 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,680 | $244,141 | 0.69% | D |
| 2BR | $1,830 | $357,960 | 0.51% | F |
| 3BR | $2,280 | $848,369 | 0.27% | F |
| 4BR | $3,060 | $1,217,591 | 0.25% | F |
U.S. Census Bureau data (2024)
The ZIP code 27605 in Raleigh, NC, presents an interesting scenario for both renters and landlords. The median household income stands at $71,096, which provides a baseline for financial capability among residents. However, the market rate for rent, measured by the Zillow Rent Index (ZORI), is $1,735 per month. This figure represents the average rental cost for properties in the area.
When comparing the ZORI to the Fair Market Rent (FMR) set at $1,850 for the fiscal year 2024, it becomes evident that the government's standard slightly exceeds the current market rates. The FMR is the amount landlords receive through Housing Choice Vouchers, commonly known as Section 8 vouchers. For households earning the median income, paying $1,735 monthly in rent would consume approximately 29% of their gross income before taxes, which is manageable but tight.
The affordability gap is further highlighted by the fact that 70.6% of the 6,286 residents are renters. This high percentage suggests strong competition among landlords to secure tenants willing to pay market rates. Moreover, the demand for affordable housing is likely significant given the substantial portion of the population that rents.
Landlords considering whether to accept voucher payments or focus on cash-paying tenants should weigh several factors. While voucher payments might offer a more stable income source, they also come with additional administrative responsibilities and potential delays in payment. On the other hand, cash-paying tenants can potentially bring in higher rents if the market supports it. Given the FMR is just above the market rate, landlords who accept vouchers will be able to tap into a large pool of potential tenants without drastically reducing their income expectations.
In conclusion, landlords in ZIP 27605 must consider the balance between administrative ease and the competitive landscape. Accepting Section 8 vouchers can provide a steady stream of tenants and income, aligning closely with the current market rates. Landlords should evaluate their capacity to handle the paperwork and oversight associated with voucher programs while assessing the local demand for affordable housing.
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.