Section 8 Fair Market Rent (FMR) for ZIP 27612 - 2027

Investment Score for ZIP 27612

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	$1,720
1 Bedroom	$1,790
2 Bedrooms	$1,950
3 Bedrooms	$2,430
4 Bedrooms	$3,260
5 Bedrooms	$3,782
6 Bedrooms	$4,236
7 Bedrooms	$4,575
8 Bedrooms	$4,804

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,950	$301,809	0.65%	D
3BR	$2,430	$487,748	0.5%	F
4BR	$3,260	$760,249	0.43%	F
5BR	$3,782	$1,100,797	0.34%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 27612 (Raleigh, NC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 27612 in Raleigh, NC, for 2026 is set at $2060 for a two-bedroom unit. This figure represents 25.8% of the median household income in the area, which stands at $95,988. However, the actual rental market in 27612 is significantly higher. The Zillow median price for a two-bedroom property is $302,002, indicating a price-to-FMR ratio of 12.2x. This suggests that the actual rental prices are likely to be much higher than the FMR, creating a significant constraint for Section 8 voucher holders who can only afford properties up to the FMR limit. For instance, a three-bedroom unit has an FMR of $2580, while the actual rental prices could easily exceed this amount, making it challenging for voucher holders to find suitable housing options. #### Affordability & Renter Profile ZIP code 27612 has a population of 41,952, with 46.4% of residents being renters. This indicates a substantial demand for rental housing in the area. Given the occupancy rate of 91.3%, the market appears to be relatively tight, suggesting that there is little excess supply of rental units. The high rent-to-income ratio and the fact that a significant portion of the population relies on rental housing point towards a market where affordability is a key concern. With 46.4% of the population renting, the competition for affordable units is likely intense, particularly for those who depend on government assistance such as Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 27612 presents both opportunities and challenges. The FMR for a two-bedroom unit is $2060, but the actual median rental price is likely much higher given the price-to-FMR ratio of 12.2x. If we assume that the actual rental prices are close to the Zillow median, then a two-bedroom unit would rent for approximately $25,000 per year ($302,002/12.2). This means that landlords who participate in the Section 8 program would receive a lower rental income compared to the market rate. However, the stability of government-backed payments and the consistent demand for affordable housing could still make this a viable investment strategy. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical costs associated with owning and managing rental properties. These costs include mortgage payments, property taxes, insurance, maintenance, and management fees. Assuming a conservative estimate of total annual expenses at around 30% of the FMR rental income, the net income would be approximately $1442 per month for a two-bedroom unit. This suggests that while the returns might be lower than market rates, they could still be positive depending on the specific property and its expenses. In terms of investment grade, the tight market and high demand for rental housing in 27612 indicate a stable and potentially lucrative investment opportunity, especially for those willing to work within the constraints of the Section 8 program. The high rent-to-income ratio also suggests that the area is experiencing strong economic growth and a robust job market, which supports the demand for rental housing. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units like one-bedroom or studio apartments, where the FMR is lower ($1880 and $1790 respectively). This will help ensure that the rental income aligns more closely with the actual market rates, thereby maximizing potential returns. 2. **Target Affordable Neighborhoods Within 27612**: While the overall market is expensive, there may be pockets within 27612 where rental prices are closer to the FMR. Investors should conduct thorough neighborhood analysis to identify these areas and target them for investment. 3. **Consider Property Enhancements**: To attract Section 8 tenants and ensure steady occupancy, investors might consider enhancing the properties to meet modern standards. This could include updates to appliances, fixtures, and amenities, which can improve the appeal of the units without significantly increasing the cost beyond the FMR limits. #### Bottom Line For Section 8-focused investors, ZIP code 27612 offers a mixed picture. While the high price-to-FMR ratio poses challenges in finding properties that fit within the FMR limits, the strong demand for rental housing and the stable economic environment make it a worthwhile consideration. The recommendation is to **Hold** investments in this ZIP code, focusing on smaller units and neighborhoods with more affordable rental prices. Investors should also be prepared to manage properties efficiently to maintain positive cash flow within the constraints of the Section 8 program.

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.