Location: Fayetteville, NC | Metro: Fayetteville, 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 | $1,100 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,640 |
| 4 Bedrooms | $2,020 |
| 5 Bedrooms | $2,343 |
| 6 Bedrooms | $2,624 |
| 7 Bedrooms | $2,834 |
| 8 Bedrooms | $2,976 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,250 | $114,786 | 1.09% | B |
| 3BR | $1,640 | $142,721 | 1.15% | B |
| 4BR | $2,020 | $222,887 | 0.91% | C |
U.S. Census Bureau data (2024)
The analysis of ZIP 28301, located in Fayetteville, NC, reveals a moderate balance between yield and stability for real estate investments. The Fair Market Rent (FMR) for the fiscal year 2024 stands at $1,070, which is notably lower than the market rent of $1,367. This indicates a potential for higher rental yields compared to the average market conditions, making it attractive for landlords looking to maximize returns.
However, the stability aspect is somewhat mixed. With 64.7% of the population being renters, there is a solid demand for rental properties. Yet, the lack of data on days on market (DOM) suggests uncertainty around how quickly properties can be leased or re-leased, which is critical for maintaining consistent cash flow. Additionally, the median household income in the area is $39,198, which is relatively low and could impact the ability of tenants to consistently pay higher rents.
The home values in ZIP 28301 average at $147,255, indicating that the area is not among the highest-priced markets, which can be beneficial for both acquisition and resale. Given these factors, ZIP 28301 leans towards a steady-cashflow zone. While the potential for higher yields exists due to the disparity between FMR and market rent, the lower income levels suggest that aggressive pricing strategies might not be sustainable.
To summarize, landlords and small-portfolio investors should approach this market with an understanding that while there is room for above-average rental income, tenant turnover and rent collection consistency may require closer management and attention. The combination of decent rental yields and a substantial portion of the population renting supports a strategy focused on steady, reliable cash flow rather than high-risk, high-reward flips.
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.