Real Estate Investing in Durham, North Carolina (27705)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 27705 (Durham, NC)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- Elevated vacancy: 8.7% vacancy may signal weakening demand.
What’s happening in Durham, NC (27705)?
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Market Analysis: 27705 Durham
Looking more closely, ZIP 27705 has challenges — vacancy pressure, softer price growth, and tenant stability concerns sit alongside the $474K median. It rewards specialists, not generalists.
For an experienced owner, 27705 can be a a viable market for hunting ground — but the discount at $474K reflects genuine risk that outside investors often underestimate.
The gap between 27705 and stronger Durham ZIPs is not closing quickly. Investors should weight long-horizon assumptions accordingly.
Put differently, 48,412 residents fill the ZIP, renter turnover runs higher than neighboring postal codes and delinquency risk is a real line item rather than a theoretical one.
Strategically, 27705 can be a high-return sleeve of a diversified portfolio — but it should not be the whole portfolio, and it should not be someone's first deal.
Here's what matters if you're considering buying a home in Durham:
Property Strategy for 27705
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $195,248 | $1,500 | 5.5% | +8.4% | $195,248 |
| 2BR | $294,308 | $1,700 | 4.2% | +7.8% | $147,154 |
| 3BR | $432,274 | $2,110 | 3.5% | +7.7% | $144,091 |
| 4BR | $705,203 | $2,530 | 2.6% | +9.0% | $176,301 |
| 5BR | $854,347 | — | — | +8.9% | $170,869 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 27705 Compare?
| Metric | 27705 | Durham | Durham-Chapel Hill, NC | North Carolina |
|---|---|---|---|---|
| Home Value | $473,801 | $318,265 | N/A | $330,565 |
| 5-Year CAGR | 4.9% | 4.5% | N/A | 7.8% |
| Avg Rent | $1,656 | $1,760 | N/A | - |
| Cap Rate | 2.7% | 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 27705 (Durham, NC). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $473,801 |
| Monthly Rent | $1,656 |
| Price-to-Rent | 23.8:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.2% |
| Cap Rate | 2.7% |
| 5-Year IRR | 7.7% |
📈 Home Appreciation
| 1-Year | +1.6% ▲ |
| 3-Year CAGR | +1.8% ▲ |
| 5-Year CAGR | +4.9% ▲ |
| 10-Year CAGR | +7.0% ▲ |
🏠 Rent Trends
| 1-Year | +4.0% ▲ |
| 3-Year CAGR | +3.9% ▲ |
| 5-Year CAGR | +4.9% ▲ |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.7%). 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 27705
Population: 48,412
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 27705
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 1,489 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
What kind of market is Durham, NC for investors?
Investors tracking Durham, NC will find a 3.0/5 rating supported by $474K median home values and $1,656/mo rents. That profile suits long-term holders targeting even-keeled returns.
What are home prices like in Durham, NC?
Median home price in Durham, NC is near $474K, with a 5-year CAGR of 0.0%. Prices have been stable and supportive of buy-and-hold strategies.
What is the average monthly rent in Durham, NC?
Expect rents around $1,656/mo per month in Durham, NC. With home values at $474K, the yield math works out to reasonable levels for rental investors.
How viable is house hacking in Durham, NC?
House hacking in Durham, NC is a challenging. With home values around $474K and rents at $1,656/mo, owner-occupants can offset a meaningful share of PITI.
What real estate strategy is ideal for Durham, NC?
For Durham, NC, careful cash-flow rentals with hands-on management is the standard investor playbook. The market structure makes it a reasonable default approach.
You know 27705 now. You don’t know where it ranks.
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How 27705 ranks in Durham-Chapel Hill, NC
Every ZIP in this metro, ranked. Free.
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