Location: Cleveland County, NC | Metro: Lincoln 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 | $850 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,390 | $278,161 | 0.5% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 28090 reveals a unique balance between yield potential and market stability. The Federal Market Rent (FMR) for 2024 is projected at $920, which is notably higher than the current market rent of $808. This suggests that properties in this area could command a premium if they meet certain quality standards, potentially offering a higher yield compared to the broader market.
However, the median home value stands at $175,656, indicating that while rental income might be higher, the initial investment required to purchase a property in this ZIP code is also substantial. For landlords and small-portfolio investors, this means that the capital required to enter the market is considerable, but the potential return on investment is promising due to the higher FMR.
Stability in the market can be gauged by several factors, including the percentage of renters and the average daily time on the market (DOM). In ZIP 28090, approximately 23.4% of residents are renters, which is relatively low and might indicate a less stable tenant base. However, the lack of data on daily DOM makes it challenging to assess how quickly properties can be rented out once they become available. Additionally, the median household income in the area is $57,714, which is below the national average and could impact tenants' ability to pay higher rents consistently.
Based on these figures, ZIP 28090 leans towards being a steady-cashflow zone. While there is potential for higher yields due to the projected increase in FMR, the lower percentage of renters and modest household income suggest that the market is not highly volatile. Investors should expect a moderate level of stability with reasonable returns, rather than the high-risk, high-reward scenario typical of a flip-style market.
To summarize, the key figures driving this assessment are:
These factors collectively point to a market that is suitable for those seeking consistent cash flow rather than rapid appreciation or turnover.
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.