Location: Pinehurst-Southern Pines, NC | Metro: Pinehurst-Southern Pines, NC MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,250 |
| 1 Bedroom | $1,340 |
| 2 Bedrooms | $1,460 |
| 3 Bedrooms | $2,030 |
| 4 Bedrooms | $2,440 |
| 5 Bedrooms | $2,830 |
| 6 Bedrooms | $3,170 |
| 7 Bedrooms | $3,424 |
| 8 Bedrooms | $3,595 |
U.S. Census Bureau data (2024)
The Section 8 housing market in ZIP code 28350, located within the Pinehurst-Southern Pines, NC MSA, presents unique opportunities and challenges for real estate investors. The Fair Market Rent (FMR) as defined by HUD for this metro area for fiscal year 2026 is set at $1,620. However, the current market rent for the area is not available, which makes it difficult to directly compare the HUD FMR to actual rental prices.
To understand how voucher tenants fare in terms of cash flow, we must consider the typical rental rates. If the market rent is higher than the HUD FMR, landlords might find that voucher tenants only cashflow with premium units, where the rent is closer to the HUD FMR rather than the higher end of the market spectrum. This scenario would mean that landlords could still profit but would need to ensure their properties are priced competitively within the FMR range.
The median home value in ZIP 28350 is also not available, making it challenging to calculate the exact rent-to-price ratio. Nonetheless, a high median home value relative to the HUD FMR would suggest a strong rent-to-price ratio, indicating that rental income is more attractive compared to owning a home in the area. This can influence potential buyers to lean towards renting over buying, thus benefiting landlords who maintain competitive rents.
In the absence of specific data on days on market (DOM) and the percentage of homes that require price cuts, we can infer that these metrics play a role in the rent-versus-buy decision-making process. A low DOM and a minimal percentage of price cuts suggest a stable and robust real estate market, which can be advantageous for long-term investment strategies focused on property appreciation and stability.
The strongest angle for investors in ZIP 28350 is likely stability. Given the reliance on HUD FMR for setting rental prices and the potential for a favorable rent-to-price ratio, investors can expect steady cash flow and a predictable market environment. This predictability allows for better planning and financial forecasting, ensuring that investments remain profitable and secure over time.
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.