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 | $1,250 |
| 1 Bedroom | $1,300 |
| 2 Bedrooms | $1,420 |
| 3 Bedrooms | $1,770 |
| 4 Bedrooms | $2,370 |
| 5 Bedrooms | $2,749 |
| 6 Bedrooms | $3,079 |
| 7 Bedrooms | $3,325 |
| 8 Bedrooms | $3,491 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,420 | $270,644 | 0.52% | F |
| 3BR | $1,770 | $307,217 | 0.58% | F |
| 4BR | $2,370 | $358,889 | 0.66% | D |
| 5BR | $2,749 | $450,563 | 0.61% | D |
U.S. Census Bureau data (2024)
Southeast Raleigh’s 27610 area is a predominantly residential district characterized by a mix of established single-family neighborhoods and expanding commercial corridors. The area is experiencing significant transition, with ongoing revitalization efforts aimed at boosting local infrastructure and retail options. A major institutional anchor driving employment and stability in the region is the WakeMed health system, which operates a massive campus just north of this ZIP code, providing a steady stream of medical professionals and support staff seeking nearby housing.
From an underwriting perspective, the math presents a clear dichotomy between HUD pricing and the open market. The FY2026 Fair Market Rent (FMR) for a 2-bedroom unit is set at $1,540, which lags behind the current Zillow market rent estimate of $1,903. This creates a negative gap of $363 per month for landlords opting for the voucher program. Investors should also note the median home value sits at $319,366, with properties moving relatively slowly, averaging a 60-day stay on the market according to Redfin data.
Despite the rent gap, demand fundamentals remain robust. The area boasts a high renter share of 40.0%, indicating a tenant-friendly environment where leasing is generally consistent. With a median household income of $67,932, many residents are cost-burdened by market rates, naturally driving demand for Housing Choice Vouchers. The neighborhood’s appeal is supported by access to major highways and proximity to downtown Raleigh, making it a practical location for commuters who cannot afford higher-price districts like Cary or North Raleigh.
The Section 8 verdict for 27610 leans toward stability over maximum cash flow. While the voucher rates do not match the peak market rents, the guarantee of subsidized payments from the housing authority mitigates vacancy risk in a market where homes linger for two months. For investors purchasing at the median 2BR price point of $274,643, the reliable FMR of $1,540 offers acceptable coverage, provided acquisition costs are managed aggressively. This ZIP is best suited for buy-and-hold landlords prioritizing consistent occupancy over immediate yield premiums.
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.