Location: Caswell County, NC | Metro: Person County, 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 | $1,010 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,720 |
| 4 Bedrooms | $1,890 |
| 5 Bedrooms | $2,192 |
| 6 Bedrooms | $2,455 |
| 7 Bedrooms | $2,651 |
| 8 Bedrooms | $2,784 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,720 | $171,060 | 1.01% | B |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP code 27305 is poised for a nuanced approach to investment, particularly for landlords and small-portfolio investors. The median home value stands at $167,754, a figure that reflects the affordability and accessibility of the housing market in this area. Despite the lack of specific data on the percentage of listings that have been reduced and the median days on market (DOM), the stagnant nature of these metrics suggests a balanced market where neither buyers nor sellers hold significant pricing power.
The Forward Monthly Rent (FMR) for ZIP 27305 in fiscal year 2024 is set at $950, while the current market rent is approximately $790. This gap between the FMR and the actual market rent indicates an opportunity for landlords to potentially increase rental rates without losing tenants. However, it also signals that the market rent may be under pressure to rise towards the FMR, reflecting broader economic conditions and demand dynamics.
For long-term investors, the setup in ZIP 27305 suggests a realistic appreciation thesis based on the interplay between housing values and rental income. As the local economy strengthens and demand for housing increases, the median home value could inch closer to the FMR, implying a gradual increase in property values. This would benefit those who hold onto properties, as they could see both their asset values appreciate and their rental incomes rise over time.
However, the lack of significant downward pressure on home values and the modest appreciation potential means that investors should focus on steady, reliable returns rather than rapid capital gains. The current balance in the market, coupled with the reasonable disparity between FMR and actual rents, positions ZIP 27305 as a stable investment opportunity, suitable for those looking to build a consistent portfolio over the next 12-24 months.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.