Location: Pinehurst-Southern Pines, NC | Metro: Durham-Chapel Hill, NC HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,020 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,200 |
| 3 Bedrooms | $1,510 |
| 4 Bedrooms | $1,840 |
| 5 Bedrooms | $2,134 |
| 6 Bedrooms | $2,390 |
| 7 Bedrooms | $2,581 |
| 8 Bedrooms | $2,710 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,510 | $282,546 | 0.53% | F |
U.S. Census Bureau data (2024)
The market in ZIP code 27208 presents a dynamic environment where the balance between supply and demand is critical for landlords and small-portfolio investors. With a Fair Market Rent (FMR) of $1190 for the fiscal year 2024, it's clear that the rental market is valued at a higher rate compared to the average market rent of $657 as reported by the Census Bureau's American Community Survey. This discrepancy suggests that there may be a segment of the market that is experiencing above-average rental values, possibly due to specific amenities or locations within the ZIP code.
The median home value of $228,238 indicates a stable housing market, but without historical data on price-cut shares and days on market (DOM), we cannot definitively state whether supply is currently outpacing demand or vice versa. However, the 12.9% renter share provides insight into the long-term housing pressures faced by the area. A lower renter share typically implies a greater homeownership rate, which can reduce immediate rental demand. Nevertheless, it also signals potential long-term stability as homeownership often correlates with a settled population less likely to move frequently.
In this context, landlords and investors should focus on understanding the local dynamics and identifying areas within ZIP 27208 that offer unique value propositions to renters, such as proximity to employment centers, schools, or recreational facilities. These factors can influence the rental market positively, ensuring steady demand even if overall rental rates are not as high as the FMR suggests.
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.