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 | $1,600 |
| 2 Bedrooms | $1,740 |
| 3 Bedrooms | $2,170 |
| 4 Bedrooms | $2,910 |
| 5 Bedrooms | $3,376 |
| 6 Bedrooms | $3,781 |
| 7 Bedrooms | $4,083 |
| 8 Bedrooms | $4,287 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,740 | $240,498 | 0.72% | D |
| 3BR | $2,170 | $324,603 | 0.67% | D |
| 4BR | $2,910 | $423,441 | 0.69% | D |
| 5BR | $3,376 | $491,899 | 0.69% | D |
U.S. Census Bureau data (2024)
Raleigh’s 27616 ZIP code, located in the northeastern part of Wake County, offers a suburban feel with convenient access to urban amenities. The area is characterized by established residential neighborhoods and growing commercial corridors. A significant local employer is the WakeMed health system, which maintains a major hospital campus nearby, providing a stable employment base for potential tenants and contributing to the area's economic resilience. The community features a mix of single-family homes and townhomes, often appealing to families seeking quieter surroundings while remaining close to Raleigh’s core.
From a financial perspective, investors must closely weigh the Housing Choice Voucher limits against current market performance. The HUD FY2026 Fair Market Rent for a 2-bedroom unit is set at $1,820, while the prevailing market rent (Zillow ZORI) sits at $1,648. This results in a positive gap of $172 in favor of the voucher, suggesting that Section 8 tenants can compete effectively for quality inventory. Median home values are $358,390, and with properties spending a median of 80 days on market, the turnover is moderate but manageable.
The local tenant pool is robust, bolstered by a renter share of 44.0% and a median household income of $83,565. This income level indicates that while many residents can afford market rates, there is still significant demand for subsidized housing options, particularly from service workers employed by nearby major institutions. Families are often drawn to the area for access to Wake County Public Schools, which generally maintain strong ratings, adding a layer of stability to tenancy as parents are less likely to move during the school year.
The verdict for 27616 is a cautious buy based on stability and moderate cash flow. With the voucher payment exceeding market rent by $172, landlords achieve a guaranteed rate that is higher than the typical market yield. The combination of a high renter population, proximity to major employers like WakeMed, and the specific payment premium makes this a solid hold for long-term investors seeking reliable income rather than rapid appreciation flips.
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.