Section 8 Fair Market Rent (FMR) for ZIP 27606 - 2027

Investment Score for ZIP 27606

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	$1,460
1 Bedroom	$1,520
2 Bedrooms	$1,660
3 Bedrooms	$2,070
4 Bedrooms	$2,770
5 Bedrooms	$3,213
6 Bedrooms	$3,599
7 Bedrooms	$3,887
8 Bedrooms	$4,081

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
2BR	$1,660	$257,493	0.64%	D
3BR	$2,070	$425,482	0.49%	F
4BR	$2,770	$665,779	0.42%	F
5BR	$3,213	$866,331	0.37%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 27606 (Raleigh, NC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 27606 in Raleigh, NC, for 2026 are as follows: - 0BR: $1520 - 1BR: $1600 - 2BR: $1750 - 3BR: $2200 - 4BR: $2940 These figures represent the maximum rent that a household can pay using a Section 8 Housing Choice Voucher. However, the actual rents in the area often exceed these amounts. For instance, the Zillow median price for a 2BR property is $256,990, which translates to a monthly rent of approximately $1,285 based on typical rental yields. This means that the actual market rent for a 2BR unit is around $1,285, significantly higher than the FMR of $1750. The constraints for voucher holders are clear: they must find units that do not exceed the FMR. In practice, this can be challenging given the high occupancy rate of 87.5%, indicating a competitive rental market. Additionally, the fact that 2BR units cost about 12.2 times the FMR suggests that landlords might be hesitant to accept vouchers due to the lower rent ceiling. #### Affordability & Renter Profile ZIP code 27606 has a population of 45,444, with 62.2% of residents being renters. The median household income is $78,371, and 2BR units at FMR represent 26.8% of this income. Given that the average renter pays about 30% of their income towards housing, the FMR for 2BR units is relatively affordable for the median household. However, the disparity between FMR and market rents indicates that many renters might struggle to find affordable housing without assistance. The occupancy rate of 87.5% suggests that the market is tight, with few vacant units available. This tightness can drive up market rents and make it difficult for voucher holders to secure housing. The high percentage of renters also implies a strong demand for rental properties, which further supports the notion of a competitive market. #### Investor Angle From an investor perspective, the ZIP code 27606 presents both opportunities and challenges. The FMRs provide a guideline for what voucher holders can afford, but the actual market rents are much higher. To determine if the ZIP is cash-flow positive at FMR, we need to consider the typical rental yield and expenses. Assuming a typical rental yield of 7% for a 2BR property priced at $256,990, the expected monthly rent would be around $1,285. At the FMR of $1750, there is a significant margin above the expected market rent, which could be beneficial for investors who are willing to accept vouchers. However, the challenge lies in finding landlords who are willing to participate in the voucher program given the lower rent ceiling. Investment grade can be assessed by considering the potential for vacancy and the stability of the rental market. With an occupancy rate of 87.5%, the risk of vacancy is relatively low. However, the high percentage of renters and the tight market suggest that competition for tenants is fierce. Investors should be prepared to offer competitive amenities and maintenance to attract and retain tenants. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high occupancy rate and tight market, smaller units (0BR and 1BR) are likely to have better cash flow at FMR. These units are less expensive to maintain and can be rented out more quickly. For example, a 1BR unit at $1600 FMR is still above the expected market rent of around $1,285, providing a good profit margin. 2. **Consider Property Enhancements**: Investing in property enhancements such as energy-efficient appliances, modern kitchens, and updated bathrooms can help attract tenants in a competitive market. These upgrades can justify slightly higher rents while still remaining within FMR guidelines. 3. **Engage with Local Real Estate Agents**: Local agents can provide valuable insights into the rental market dynamics and help identify landlords who are willing to accept vouchers. They can also advise on the best neighborhoods within ZIP 27606 where voucher acceptance is more common. #### Bottom Line For Section 8-focused investors, ZIP code 27606 offers a mixed picture. While the high occupancy rate and strong demand for rentals indicate a stable market, the disparity between FMR and market rents poses a challenge. The recommendation for this ZIP is to **Hold**. Investors should focus on smaller units and consider property enhancements to improve cash flow and tenant retention. Engaging with local real estate agents will be crucial to navigate the complexities of the voucher program and identify suitable 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.