Section 8 Fair Market Rent (FMR) for ZIP 27615 - 2027

Investment Score for ZIP 27615

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	$1,660
1 Bedroom	$1,730
2 Bedrooms	$1,880
3 Bedrooms	$2,340
4 Bedrooms	$3,140
5 Bedrooms	$3,642
6 Bedrooms	$4,079
7 Bedrooms	$4,405
8 Bedrooms	$4,625

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	$1,880	$249,090	0.75%	D
3BR	$2,340	$431,644	0.54%	F
4BR	$3,140	$702,689	0.45%	F
5BR	$3,642	$1,045,688	0.35%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 27615 (Raleigh, NC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 27615 is set by HUD for the year 2026. For a two-bedroom unit, the FMR is $1970 per month. This figure represents 21.0% of the median household income in the area, which stands at $112,754. The actual rental prices in the market can be compared to these figures to understand how feasible it is for voucher holders to find suitable housing. According to the provided data, the Zillow median price for a two-bedroom home in ZIP 27615 is $256,493. This translates into a monthly mortgage payment of approximately $1,193 based on a 4.5% interest rate and a 30-year fixed mortgage term. However, the price-to-FMR ratio is 10.8x, indicating that the median home price is significantly higher than the rent for a similar-sized unit. This suggests that the rental market is likely to be more expensive than the FMR, creating a challenge for Section 8 voucher holders who must find units that do not exceed their voucher limits. #### Affordability & Renter Profile ZIP code 27615 has a population of 46,019, with 27.6% of residents being renters. This means there are approximately 12,700 renters in the area. Given the occupancy rate of 92.4%, it is clear that the rental market is quite tight, with few vacant units available. The median household income of $112,754 indicates that this is a relatively affluent area, where the average renter might have a higher income than the national average. However, the affordability constraint for Section 8 voucher holders is significant. With a two-bedroom unit costing $1970 per month under the voucher program, they would need to find properties that do not exceed this amount. Given the high median home price and the tight rental market, it is likely that many units are priced above the FMR, making it difficult for voucher holders to secure housing. #### Investor Angle From an investor's perspective, the key question is whether the rental market allows for cash flow positive investments at the FMR levels. Given the Zillow median price for a two-bedroom unit at $256,493, and assuming a typical rental yield of around 5-7% in Raleigh, the expected monthly rental income would range between $1,068 and $1,485. This is well below the FMR of $1970 for a two-bedroom unit, suggesting that the rental market is indeed favorable for investors who can secure tenants willing to pay the higher market rates. However, for investors focusing specifically on Section 8 vouchers, the situation is more challenging. The FMR for a two-bedroom unit is $1970, which is only slightly above the mortgage payment of $1,193. This leaves a narrow margin for profit, especially when factoring in maintenance costs, property management fees, and other expenses. Therefore, while the overall rental market is strong, the specific niche of Section 8 vouchers may not be as lucrative. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Investors should consider focusing on smaller units such as one-bedroom apartments, which have an FMR of $1800. This is still above the mortgage payment for a two-bedroom unit, providing a better margin for profit. Additionally, the demand for one-bedroom units is likely to be higher due to the limited supply of affordable two-bedroom units. 2. **Target Affordable Neighborhoods**: Within ZIP 27615, there may be specific neighborhoods or areas where rental prices are closer to the FMR. Investors should conduct a detailed neighborhood analysis to identify these pockets of affordability. For instance, areas near public transportation hubs or those with a higher concentration of lower-income residents might offer more opportunities for Section 8-focused investments. 3. **Consider Multi-Family Properties**: Multi-family properties can provide economies of scale and potentially higher returns. A four-unit apartment building with each unit renting at the FMR for a two-bedroom ($1970) would generate a total of $7,880 per month in rental income. If the mortgage payment for the entire property is around $4,772 (based on the same assumptions as above), this would leave a net positive cash flow of $3,108 per month before expenses. This makes multi-family properties a more attractive option for Section 8-focused investors. #### Bottom Line Given the high median home price and the tight rental market in ZIP 27615, the recommendation for Section 8-focused investors is to **Skip** this ZIP code. The FMR levels are too low relative to the actual market rents, leaving little room for profit. While the overall rental market is strong, the specific requirements of Section 8 vouchers make it challenging to achieve cash flow positive investments. Investors looking to target this demographic should consider ZIP codes with lower median home prices and more affordable rental markets.

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.