Location: Pinehurst-Southern Pines, NC | Metro: Pinehurst-Southern Pines, NC MSA
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 | $1,260 |
| 1 Bedroom | $1,350 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $2,060 |
| 4 Bedrooms | $2,480 |
| 5 Bedrooms | $2,877 |
| 6 Bedrooms | $3,222 |
| 7 Bedrooms | $3,480 |
| 8 Bedrooms | $3,654 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,480 | $212,292 | 0.7% | D |
| 3BR | $2,060 | $387,097 | 0.53% | F |
| 4BR | $2,480 | $528,769 | 0.47% | F |
| 5BR | $2,877 | $602,090 | 0.48% | F |
U.S. Census Bureau data (2024)
ZIP code 28327 is part of the Carthage, NC area, characterized by a moderate-sized population of 19,386 residents. Only 19.5% of the inhabitants are renters, indicating a predominantly owner-occupied community. The median household income here stands at a robust $87,434, reflecting a relatively affluent neighborhood. The median home value in this region is notably high at $405,832, suggesting that the area is well-established and has significant property investment value.
When it comes to rental economics, the Fair Market Rent (FMR) for the metro area for fiscal year 2026 is set at $1,640. In comparison, the actual market rent, as measured by Zillow's Observed Rent Index (ZORI), is slightly lower at $1,579. This indicates that the rental market is competitive and slightly below the government's benchmark, which could be advantageous for both voucher operators and value-add investors.
The low percentage of renters in ZIP 28327 means that there is limited demand for rental properties, making it a challenging environment for hands-off voucher operators who rely on a steady stream of tenants. However, the discrepancy between the FMR and the actual market rent presents an opportunity for hands-on value-add buyers who can improve property quality and increase rents closer to the FMR level. These investors would need to focus on enhancing the attractiveness of their rental units to capture a higher share of the market and potentially command rents above the current average.
In conclusion, ZIP 28327 in Carthage, NC, offers a mix of challenges and opportunities for real estate investors. While it is not ideal for hands-off operations due to the low rental demand, it provides a fertile ground for active investors looking to add value through property improvements and strategic management practices. The affluent nature of the neighborhood and the potential to align rents with the FMR suggest that such efforts could yield substantial returns.
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.