Location: Durham-Chapel Hill, NC | Metro: Durham-Chapel Hill, NC HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,520 |
| 1 Bedroom | $1,580 |
| 2 Bedrooms | $1,770 |
| 3 Bedrooms | $2,190 |
| 4 Bedrooms | $2,520 |
| 5 Bedrooms | $2,923 |
| 6 Bedrooms | $3,274 |
| 7 Bedrooms | $3,536 |
| 8 Bedrooms | $3,713 |
The analysis of ZIP code 27715 within the Durham-Chapel Hill, NC HUD Metro Fair Market Rent (FMR) area reveals several key points that landlords and small-portfolio investors should consider.
The rent math does not work in favor of landlords. The Fair Market Rent set at $1650 for FY 2024 is lower than the typical market rent, which is currently unavailable. This means that landlords may struggle to cover their expenses and make a profit if they adhere strictly to the FMR guidelines.
Acquisition affordability is challenging due to the lack of specific data on the median home value, days on market (DOM), and the percentage of homes that have undergone price cuts. Without these figures, it's difficult to gauge how easy or hard it will be to acquire properties in this area at reasonable prices.
Tenant demand is present but requires further investigation. The exact population and the percentage of renters in the area are not specified, making it hard to quantify the potential tenant pool accurately. However, given the location within the Durham-Chapel Hill metropolitan area, it can be inferred that there is likely a significant number of renters due to the presence of universities and job markets.
In summary, while there appears to be tenant demand in ZIP 27715, the low Fair Market Rent of $1650 poses challenges for profitability. Additionally, the lack of detailed information on property acquisition costs and conditions suggests that more research is needed before making investment decisions in this area. Landlords should proceed with caution and seek out comprehensive local real estate data to inform their investment strategies.
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.