Section 8 Fair Market Rent (FMR) for ZIP 27713 - 2027

Investment Score for ZIP 27713

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	$1,650
1 Bedroom	$1,710
2 Bedrooms	$1,920
3 Bedrooms	$2,380
4 Bedrooms	$2,740
5 Bedrooms	$3,178
6 Bedrooms	$3,559
7 Bedrooms	$3,844
8 Bedrooms	$4,036

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
1BR	$1,710	$164,026	1.04%	B
2BR	$1,920	$262,556	0.73%	D
3BR	$2,380	$384,785	0.62%	D
4BR	$2,740	$540,544	0.51%	F
5BR	$3,178	$731,767	0.43%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 27713 (Durham, NC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 27713 is set by HUD for 2026 as follows: - 0BR: $1570 - 1BR: $1670 - 2BR: $1900 - 3BR: $2350 - 4BR: $2760 These figures represent the maximum rent that a Section 8 voucher holder can pay for a unit in each size category. However, it is important to understand how these FMRs compare to actual rents in the area. The Zillow median price for a 2BR property in this ZIP code is $270,059. This implies that the average rent for a 2BR unit would be significantly higher than the FMR due to the high price-to-rent ratio. Specifically, the price-to-FMR ratio for a 2BR unit is 11.8x, indicating that the average rent is approximately $170 per month higher than the FMR. This creates a significant constraint for voucher holders, who must find units that do not exceed their maximum allowable rent. Given the high price-to-rent ratio, it is likely that many landlords will not accept Section 8 vouchers because they can charge higher rents to non-voucher tenants. #### Affordability & Renter Profile ZIP code 27713 has a population of 59,197, with 40.6% of residents being renters. The occupancy rate is 95.2%, suggesting that the rental market is quite tight. The median household income in this ZIP code is $100,676, which means that the average renter has a relatively high income compared to the national average. For a 2BR unit, the FMR represents 22.6% of the median income, making it somewhat affordable for those with the median income but still challenging for lower-income households. Given the high median income and the tight occupancy rate, it is likely that the majority of renters in this ZIP code have stable employment and can afford market-rate rents. This suggests that the rental market is competitive, with fewer units available at or below the FMR. Consequently, voucher holders may struggle to find suitable housing options within their budget. #### Investor Angle From an investor's perspective, the key question is whether properties rented at FMR levels can generate positive cash flow. To assess this, we need to consider the typical operating expenses and mortgage payments associated with a rental property in this ZIP code. Assuming a 2BR unit priced at the Zillow median of $270,059, and using a conservative estimate of a 5% down payment and a 30-year fixed mortgage rate of 5%, the monthly mortgage payment would be around $1300. Adding typical operating expenses such as property taxes, insurance, maintenance, and utilities, the total monthly cost could range from $1600 to $1800. Since the FMR for a 2BR unit is $1900, this leaves a small margin for profit, assuming the property is fully occupied. The investment grade for this ZIP code would be considered moderate. While there is potential for positive cash flow, the tight rental market and the high proportion of renters with higher incomes suggest that competition for tenants is fierce. Investors should also be aware that the demand for Section 8 units may be limited due to the higher rents commanded by the market. #### Specific Actionable Insights 1. **Target Lower-Income Units**: Focus on acquiring properties that are currently renting below the FMR. For example, a 2BR unit renting at $1800 instead of $1900 would provide a better margin for positive cash flow. This strategy would also make it easier for Section 8 voucher holders to find housing. 2. **Consider Multi-Family Properties**: Multi-family buildings often offer economies of scale that can help offset the lower rents allowed by FMR. A 3BR or 4BR unit might be more attractive to families and could potentially command higher rents while still staying within FMR guidelines. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can increase the likelihood of securing Section 8 tenants. These authorities can provide valuable insights into the availability of vouchers and the preferences of voucher holders. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 27713 is to **Hold**. While there is potential for positive cash flow, the tight rental market and the high proportion of renters with higher incomes make it challenging to find enough Section 8 tenants to fill the units. Additionally, the high price-to-rent ratio indicates that market-rate rents are significantly above FMR levels, further limiting the pool of available units for voucher holders. Investors should carefully evaluate the specific characteristics of potential properties and consider targeting lower-income units or multi-family buildings to maximize their chances of success. Engaging with local housing authorities can also be beneficial in securing a steady stream of Section 8 tenants.

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.