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 | $1,530 |
| 1 Bedroom | $1,590 |
| 2 Bedrooms | $1,730 |
| 3 Bedrooms | $2,150 |
| 4 Bedrooms | $2,890 |
| 5 Bedrooms | $3,352 |
| 6 Bedrooms | $3,754 |
| 7 Bedrooms | $4,054 |
| 8 Bedrooms | $4,257 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,730 | $479,269 | 0.36% | F |
| 3BR | $2,150 | $608,166 | 0.35% | F |
| 4BR | $2,890 | $886,660 | 0.33% | F |
| 5BR | $3,352 | $1,491,846 | 0.22% | F |
U.S. Census Bureau data (2024)
The ZIP code 27607 in Raleigh, NC, is characterized by a diverse and moderately sized population of 28,438 residents, with a significant portion—56.0%—living as renters. The neighborhood's median household income stands at $96,775, indicating a relatively affluent area. This affluence is further reflected in the median home value, which is notably high at $706,034.
In terms of rental economics, the Fair Market Rent (FMR) for ZIP 27607 in fiscal year 2024 is set at $1,670. In contrast, the market rent, measured by the Zillow Observed Rental Index (ZORI), is slightly lower at $1,508. This suggests that while the government's estimate for housing costs is higher, the actual market rates are somewhat more favorable for both landlords and tenants.
Given these figures, ZIP 27607 is well-suited for a hands-off Section 8 voucher operator due to the high proportion of renters and the reasonable gap between FMR and market rent. However, the area also presents opportunities for a hands-on value-add buyer. With a median income significantly above the national average and a strong demand for rentals, there is potential for enhancing property values through improvements and strategic management practices.
To conclude, the neighborhood offers a balance between stability and opportunity. Landlords can rely on the consistent demand driven by the substantial rental population, while small-portfolio investors have the chance to capitalize on the economic dynamics of the area by actively managing their 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.