Location: Montgomery County, NC | Metro: Pinehurst-Southern Pines, NC MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,050 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,710 |
| 4 Bedrooms | $2,060 |
| 5 Bedrooms | $2,390 |
| 6 Bedrooms | $2,677 |
| 7 Bedrooms | $2,891 |
| 8 Bedrooms | $3,036 |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 27356 (Star, NC) for Section 8 investments, follow this decision tree based on the provided data:
1) Does FMR $1,030 (metro FY 2026) clear debt service on a $146,171 property?
Yes. If your property's debt service is less than $1,030 per month, then the Fair Market Rent (FMR) covers your costs. This is a positive indicator for investment.
No. If your debt service exceeds $1,030 per month, then the FMR does not cover your costs. In this case, purchasing a property in Star, NC, for Section 8 purposes would be financially unwise.
It depends. The viability hinges on the specifics of your mortgage terms and other fixed costs. If these are marginal around $1,030, you must evaluate whether potential cost savings or subsidies can bridge the gap.
2) Is market rent $758 (Census ACS) above, at, or below FMR?
Above FMR. If the market rent is higher than $1,030, you might consider alternative non-Section 8 tenants who could pay more, making the investment more profitable.
At FMR. If the market rent matches the FMR, you can secure a steady income stream without financial strain, but there won't be additional profit margins from rent alone.
Below FMR. With market rent at $758, which is below the FMR, Section 8 properties could offer a higher guaranteed income compared to market rates. However, this also indicates that the local market might not support higher rents.
3) Are 30.1% renters + N/A-day DOM enough demand?
Yes. If the 30.1% of renters in Star, NC, represents a significant portion of the population and the days on market (DOM) for rentals is low or stable, there is sufficient demand to justify investment. A low DOM suggests quick turnover and strong interest from potential tenants.
No. If the DOM is high, indicating long periods before properties are rented out, this signals weak demand. High DOM values can lead to prolonged vacancy, impacting cash flow negatively.
It depends. The absence of DOM data makes it difficult to assess rental speed. You will need to research further into the local rental market dynamics to understand if the 30.1% of renters translates into a robust demand for Section 8 properties.
In summary, if the FMR of $1,030 covers your debt service, and the market rent is below this figure, with a notable 30.1% of the population being renters, then Star, NC, presents a viable opportunity for Section 8 investment. However, the lack of DOM data requires additional investigation to fully gauge the demand. Always ensure you align your investment strategy with the financials and market conditions to make informed decisions.
Data Sources: FMR data from HUD (2027). 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.