Section 8 Fair Market Rent (FMR) for ZIP 27909 - 2027

Investment Score for ZIP 27909

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	$1,010
1 Bedroom	$1,030
2 Bedrooms	$1,220
3 Bedrooms	$1,690
4 Bedrooms	$1,990
5 Bedrooms	$2,308
6 Bedrooms	$2,585
7 Bedrooms	$2,792
8 Bedrooms	$2,932

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,220	$155,502	0.78%	D
3BR	$1,690	$268,283	0.63%	D
4BR	$1,990	$369,816	0.54%	F
5BR	$2,308	$415,014	0.56%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 27909 (Elizabeth City, NC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 27909, Elizabeth City, NC, is set by HUD for 2026. For a two-bedroom unit, the FMR is $1,190 per month. This figure represents 21.4% of the median household income in the area, which stands at $66,732. However, the actual rental prices in the market are significantly higher. According to Zillow, the median price for a two-bedroom home in this ZIP code is $153,408, which translates to a monthly rent of approximately $1,278 when considering typical mortgage payments and property taxes. The price-to-FMR ratio is 10.7x, indicating that the market rents are much higher than the FMR. This disparity means that tenants with Section 8 vouchers face significant constraints. They can only afford units up to the FMR, which is below the market rate. Consequently, voucher holders might struggle to find suitable housing, particularly in a competitive market where landlords may prefer paying tenants who do not require government assistance. #### Affordability & Renter Profile Elizabeth City has a population of 40,869, with 32.5% of residents being renters. The occupancy rate is 89.1%, suggesting that the housing market is relatively tight. Given the median household income of $66,732, the affordability of housing is a concern for many residents. A two-bedroom unit priced at $1,278 per month would consume about 22.8% of the median income, which is above the recommended threshold of 30%. This indicates that the cost of living is high relative to income levels, making it challenging for low-income households to find affordable housing. The renter profile in this ZIP code likely includes individuals and families with limited financial resources, such as those relying on government assistance like Section 8 vouchers. With the FMR being lower than the actual market rents, these renters may have difficulty securing housing without additional subsidies or finding landlords willing to accept Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 27909 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1,190, while the market rent is around $1,278. This suggests that properties rented at FMR levels would generate slightly less revenue compared to market rates. However, the demand for affordable housing is strong due to the high percentage of renters and the tight market conditions. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the costs associated with owning and maintaining rental properties. Assuming a typical mortgage payment, property taxes, insurance, maintenance, and other expenses, the break-even point for a two-bedroom unit would be around $1,190. If the actual market rent is $1,278, then an investor could potentially earn a small profit by renting at market rates. However, if they choose to rent at FMR levels, they would need to ensure that their expenses are well-managed to maintain profitability. The investment grade for this ZIP code would depend on various factors, including the stability of the local economy, the demand for affordable housing, and the willingness of landlords to accept Section 8 vouchers. Given the high renter percentage and the tight occupancy rate, there is a strong demand for rental properties, which could make this ZIP code attractive for investors focusing on affordable housing. #### Specific Actionable Insights 1. **Focus on Affordable Units**: Investors should focus on acquiring or developing two-bedroom units priced at or near the FMR of $1,190. This will cater to the needs of low-income households and align with the Section 8 program's requirements. Additionally, this strategy can help mitigate the risk of vacancy in a market where many potential tenants are constrained by their income. 2. **Engage with Local Housing Authorities**: To increase the likelihood of finding tenants, investors should engage with local housing authorities and become familiar with the Section 8 process. This can include understanding the application procedures, tenant selection criteria, and any local regulations that affect the acceptance of Section 8 vouchers. 3. **Consider Property Management Services**: Given the complexities of managing Section 8 properties, investors might benefit from partnering with experienced property management companies. These firms can handle the administrative tasks, ensuring compliance with HUD regulations and facilitating smoother tenant-landlord interactions. #### Bottom Line For Section 8-focused investors, the ZIP code 27909 presents a mixed picture. While the market rents are higher than the FMR, the strong demand for affordable housing and the tight occupancy rate suggest that there is a viable market for properties rented at FMR levels. However, the challenge lies in managing costs effectively to ensure profitability. **Recommendation**: **Hold**. Investors should hold properties in this ZIP code that are already rented at or near FMR levels, as the demand for affordable housing is robust. However, new acquisitions should be approached cautiously, with careful consideration of the cost structure and the ability to manage Section 8 properties efficiently.

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.