Real Estate Investing in Durham, North Carolina (27704)
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Should you buy in 27704 (Durham, NC)? Our answer, based on the numbers below.
Solid choice — stable market with a reasonable entry point and good rental backup if you ever need to move.
A cash-flow market — rent-to-price math works from day one, though value growth is modest. Great for income-focused investors.
No major risk flags on the data we track.
What’s happening in Durham, NC (27704)?
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Market Analysis: 27704 Durham
This part of Durham County is not an easy win. The 27704 ZIP posts softness in key indicators, and the playbook that works in cleaner markets often stalls here.
Distressed markets are won on execution, not on spreadsheets. ZIP 27704 clocks in at the profile where tenant screening, deferred maintenance, and local relationships determine the outcome.
On balance, 27704 offers a low basis, the region around Durham has moved on in ways that the ZIP itself has not fully absorbed. The result is a discount with genuine reasons.
The 27704 ZIP's population of 41,346 has faced economic pressure over the last decade. That pressure shows up in rent delinquency patterns that reflects the need for careful underwriting.
The 27704 ZIP fits a narrow investor profile — hands-on, patient, and willing to accept that the cap rate on paper is not the cap rate in reality.
Here's what matters if you're considering buying a home in Durham:
Property Strategy for 27704
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $200,710 | $1,480 | 5.3% | +9.7% | $200,710 |
| 2BR | $254,243 | $1,690 | 4.8% | +8.1% | $127,122 |
| 3BR | $312,746 | $2,110 | 4.9% | +8.2% | $104,249 |
| 4BR | $378,137 | $2,530 | 4.8% | +8.6% | $94,534 |
| 5BR | $425,877 | — | — | +8.6% | $85,175 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 27704 Compare?
| Metric | 27704 | Durham | Durham-Chapel Hill, NC | North Carolina |
|---|---|---|---|---|
| Home Value | $311,755 | $318,265 | N/A | $330,565 |
| 5-Year CAGR | 4.7% | 4.5% | N/A | 7.8% |
| Avg Rent | $1,788 | $1,760 | N/A | - |
| Cap Rate | 4.5% | 3.4% | - | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 27704 (Durham, NC). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $311,755 |
| Monthly Rent | $1,788 |
| Price-to-Rent | 14.5:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 6.9% |
| Cap Rate | 4.5% |
| 5-Year IRR | 9.2% |
📈 Home Appreciation
| 1-Year | -0.9% ▼ |
| 3-Year CAGR | +0.5% ▲ |
| 5-Year CAGR | +4.7% ▲ |
| 10-Year CAGR | +8.4% ▲ |
🏠 Rent Trends
| 1-Year | +0.6% ▲ |
| 3-Year CAGR | +2.8% ▲ |
| 5-Year CAGR | +4.3% ▲ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (4.5%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 27704
Population: 41,346
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Schools in 27704
Schools in This ZIP Code
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
🎓 Nearby Colleges & Universities
Investor Insight: With 1,232 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
How expensive is real estate in Durham, NC?
Median home price in Durham, NC is near $312K, with a 5-year CAGR of 0.0%. Prices have been consistent and supportive of buy-and-hold strategies.
What kind of tenants rent in Durham, NC?
Tenant quality in Durham, NC ranks as solid. Landlords generally report even-keeled occupancy at market rents of $1,788/mo.
Are eviction rules reasonable in Durham, NC?
Durham, NC falls under NC landlord-tenant law, which is landlord-friendly. That backdrop makes day-to-day property management reasonable.
Is Durham, NC good for house hacking?
House hacking in Durham, NC is a challenging. With home values around $312K and rents at $1,788/mo, owner-occupants can offset a meaningful share of PITI.
What kind of market is Durham, NC for investors?
Our data puts Durham, NC at 3.0/5 for investability. Home prices of $312K and rents around $1,788/mo create a solid backdrop for investor activity.
You know 27704 now. You don’t know where it ranks.
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How 27704 ranks in Durham-Chapel Hill, NC
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