Location: Lee County, NC | Metro: Harnett County, NC
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 | $990 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,560 |
| 4 Bedrooms | $1,960 |
| 5 Bedrooms | $2,274 |
| 6 Bedrooms | $2,547 |
| 7 Bedrooms | $2,751 |
| 8 Bedrooms | $2,889 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,250 | $208,349 | 0.6% | F |
| 3BR | $1,560 | $289,826 | 0.54% | F |
| 4BR | $1,960 | $358,146 | 0.55% | F |
| 5BR | $2,274 | $475,027 | 0.48% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 27332, located in Sanford, NC, within the Lee County, NC metro area, does not work favorably for landlords. The Fair Market Rent (FMR) set at $1,140 for the fiscal year 2024 contrasts sharply with the market rent, which stands at a significantly higher $1,921. This discrepancy means that landlords may struggle to attract tenants willing to pay the FMR rate, especially when market conditions suggest a much higher willingness to pay.
Regarding acquisition affordability, the median home value in ZIP 27332 is $298,499. This figure is relatively stable, as evidenced by the average Days on Market (DOM) being only 40 days and a low 0.3% price-cut share. These metrics indicate that homes are selling quickly without significant price reductions, suggesting a competitive market for property acquisitions. Landlords should expect to pay close to the median value and be prepared for quick competition when purchasing properties.
Tenant demand in ZIP 27332 is substantial, with a total population of 36,947 and a renter share of 25.0%. This translates into approximately 9,237 potential renters, providing a solid base of demand for rental properties. However, the high market rent suggests that many may be priced out of the market, leading to a competitive environment for both landlords and tenants.
Verdict: ZIP 27332 presents a challenging scenario for landlords and small-portfolio investors. While there is a considerable tenant demand, the disparity between the FMR and market rent could make it difficult to find tenants willing to pay the lower FMR rate. Acquisition costs are also high, with homes selling quickly at median values, indicating a competitive market. Investors must weigh these factors carefully and consider strategies to align rents closer to the market rate while remaining attractive to the local tenant pool. Despite the challenges, the strong tenant base ensures that well-priced units will likely find occupants.
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.