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 |
A skeptical investor might question whether the Fair Market Rent (FMR) of $1650 for ZIP 27722 in fiscal year 2024 will sufficiently cover the mortgage on a property. Unfortunately, the data does not provide the median home value for ZIP 27722 directly. However, we can infer that if the typical mortgage payment exceeds $1650, landlords may face financial pressure.
The second objection concerns the adequacy of renter demand. The available data does not specify the rental vacancy rate for ZIP 27722. Without this figure, it's challenging to determine if there is sufficient demand to fill rental units at the FMR price point. A high vacancy rate could indicate a glut of supply, making it harder to attract tenants willing to pay $1650 per month.
Lastly, an investor might wonder if HUD vouchers will keep up with the market rents. According to the HUD Small Area Fair Market Rents (SAFMRs), the payment standards for ZIP 27722 are set to reflect local market conditions. However, the exact amount of the voucher payment standard is not provided in the data. If the voucher amounts fall significantly below $1650, landlords may struggle to find tenants who can make up the difference.
To summarize, while the FMR is set at $1650 for fiscal year 2024, we lack specific data points such as the median home value and the rental vacancy rate to fully address these concerns. Investors should seek out additional local market analysis to ensure that their investments in ZIP 27722 align with their financial goals and risk tolerance.
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.