Section 8 Fair Market Rent (FMR) for ZIP 27697 - 2027

Location: Raleigh-Cary, NC | Metro: Raleigh-Cary, NC MSA

FY 2027 Fair Market Rent Rates

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

To determine if you should buy in ZIP code 27697 for Section 8 purposes, follow this decision tree:

1) Does the Fair Market Rent (FMR) of $1700 cover your debt service?

Yes: Proceed to the next question.
No: Do not invest in this area. The FMR is insufficient to cover your monthly mortgage payments and other expenses.

2) How does the market rent compare to the FMR?

Above FMR: The area is likely too expensive for most Section 8 tenants. Consider other areas where market rents align more closely with the FMR.
At or Below FMR: This indicates that the market rent is competitive with the FMR, making it feasible for Section 8 tenants to find housing here. Move to the next question.

3) Is there sufficient tenant demand?

Yes, if the percentage of renters and days on the market (DOM) indicate strong demand: Invest in the area. A high percentage of renters combined with low DOM suggests that there is a good chance of finding and retaining tenants quickly.
No, if the percentage of renters is low and/or DOM is high: Do not invest. The market may be saturated, or there may not be enough potential tenants to justify the investment.
It Depends, if the data shows moderate demand: Consider investing but proceed with caution. Ensure you have a thorough understanding of the local rental market dynamics and competition.

Note: Specific percentages and DOM figures are required to make a precise assessment. Without these figures, the analysis is incomplete. For example, if 50% of residents are renters and the average DOM is 30 days, this would suggest moderate demand, leading to an "it depends" conclusion.

The decision to invest in ZIP 27697 for Section 8 properties hinges on whether the FMR can cover your costs, how the market rent compares to the FMR, and the overall demand for rental properties. Use the provided data points to guide your decision-making process.

Data Sources: FMR data from HUD (2027).

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.