Location: Dare County, NC | Metro: Dare 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 | $1,220 |
| 1 Bedroom | $1,410 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $1,960 |
| 4 Bedrooms | $2,040 |
| 5 Bedrooms | $2,366 |
| 6 Bedrooms | $2,650 |
| 7 Bedrooms | $2,862 |
| 8 Bedrooms | $3,005 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,410 | $383,406 | 0.37% | F |
| 2BR | $1,540 | $390,129 | 0.39% | F |
| 3BR | $1,960 | $640,252 | 0.31% | F |
| 4BR | $2,040 | $826,887 | 0.25% | F |
| 5BR | $2,366 | $1,247,372 | 0.19% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 27949, Southern Shores, NC, hinges on the interplay between rental yields and market stability. With a Fair Market Rent (FMR) of $1,610 for the fiscal year 2026, the metro area offers a higher potential rental income compared to the market rate of $1,306. This indicates that properties in Southern Shores could command rents above the average market price, leading to potentially higher yields.
However, the median home value stands at $784,455, which is significantly high. This suggests that the cost of acquiring property in Southern Shores is substantial, and thus, the overall yield when considering the purchase price is moderate. The income level of residents, averaging $120,662, supports the ability to pay higher rents but also points towards a relatively affluent area where rental demand might be less elastic.
Stability in the market is influenced by several factors including the percentage of renters, days on market (DOM), and average income levels. In Southern Shores, 16.6% of residents are renters, indicating a low renter population relative to owner-occupied homes. A DOM of 51 days suggests a moderately stable market; it's not excessively long, which would indicate difficulty in renting out units, but it's also not short, which would imply strong demand.
Given these figures, Southern Shores does not fit neatly into either a high-yield/low-stability flip-style market or a steady-cashflow zone. Instead, it represents a middle ground. The higher FMR of $1,610 versus the market rate of $1,306 indicates some upside potential for rental income, yet the high median home value and moderate DOM suggest a stable but not highly dynamic rental environment. Landlords and small-portfolio investors should expect moderate yields and stability, making it suitable for those seeking a balanced approach to real estate investment.
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.