Location: Durham-Chapel Hill, NC | Metro: Durham-Chapel Hill, NC HUD Metro FMR Area
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 | $1,720 |
| 1 Bedroom | $1,790 |
| 2 Bedrooms | $2,010 |
| 3 Bedrooms | $2,490 |
| 4 Bedrooms | $2,860 |
| 5 Bedrooms | $3,318 |
| 6 Bedrooms | $3,716 |
| 7 Bedrooms | $4,013 |
| 8 Bedrooms | $4,214 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,010 | $308,938 | 0.65% | D |
| 3BR | $2,490 | $384,175 | 0.65% | D |
| 4BR | $2,860 | $511,447 | 0.56% | F |
| 5BR | $3,318 | $590,277 | 0.56% | F |
U.S. Census Bureau data (2024)
ZIP code 27712, located in Durham, NC, falls within the Durham-Chapel Hill, NC HUD Metro FMR Area. Its Fair Market Rent (FMR) for fiscal year 2024 is set at $1,940. This figure represents the maximum rent that a household receiving housing assistance can pay. In comparison, the actual market rent in ZIP 27712 is lower at $1,655, indicating a potential subsidy gap where the government's estimate exceeds what the market demands.
The median home value in ZIP 27712 is $426,862. This is higher than the average home value seen in many other ZIP codes within the same metro area, suggesting a relatively affluent neighborhood. However, the renter share in this ZIP code stands at 9.8%, which is notably low compared to the typical renter share in the Durham-Chapel Hill, NC HUD Metro FMR Area.
Given the specifics, ZIP 27712 appears to be a mid-tier neighborhood within the broader Durham-Chapel Hill metro area. The FMR is above the market rent, but the home values are also higher than average. This suggests that while it offers some affordability for renters due to the subsidy, it is not necessarily a value pocket where both rents and home values are significantly below the metro average. Instead, it leans towards being a premium sub-market due to its higher home values, even though the renter share is relatively low.
A key point of divergence is the combination of a high FMR with a below-metro median home value. This could signal an opportunity for landlords who are willing to accept Section 8 vouchers, as the subsidy might cover a larger portion of the rent relative to the cost of living in the area. For small-portfolio investors, this ZIP code may present a balance between investment quality and the potential to attract subsidized tenants without having to significantly undercut market rates.
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.