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 | $1,530 |
| 1 Bedroom | $1,640 |
| 2 Bedrooms | $1,800 |
| 3 Bedrooms | $2,500 |
| 4 Bedrooms | $3,010 |
| 5 Bedrooms | $3,492 |
| 6 Bedrooms | $3,911 |
| 7 Bedrooms | $4,224 |
| 8 Bedrooms | $4,435 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,640 | $233,297 | 0.7% | D |
| 2BR | $1,800 | $352,845 | 0.51% | F |
| 3BR | $2,500 | $497,678 | 0.5% | F |
| 4BR | $3,010 | $732,932 | 0.41% | F |
| 5BR | $3,492 | $1,033,638 | 0.34% | F |
U.S. Census Bureau data (2024)
The average home value in ZIP code 28374, Pinehurst, NC, is $533,541, reflecting a stable real estate market. This median home value has increased by 0.8% over the past year, according to Zillow. Redfin reports that in February 2026, the median home price was $552,000, representing a 9.1% increase compared to the previous year. These figures indicate a slight upward trend in home values, which can influence the rent-to-price ratio and provide some appreciation potential for investors.
The HUD Fair Market Rent (FMR) for the Pinehurst-Southern Pines, NC MSA, is set at $1,990 for fiscal year 2026. This is slightly below the market rent, as indicated by Zillow’s ZORI index, which is $2,023. Landlords accepting Section 8 vouchers will experience marginal cash flow, meaning they will need to manage costs carefully to ensure profitability. Premium units or strategic cost management could enhance cash flow potential.
The median Days on Market (DOM) for homes in ZIP 28374 is 78 days, an increase from 33 days last year, suggesting a slower sales pace. However, this does not significantly impact the rental market, which maintains a DOM of 32 days. The low price-cut share of 0.2% indicates that landlords can typically command their asking rents without needing to reduce prices, contributing to a stable rental environment.
The strongest investor angle in this market is stability. Despite the marginal cash flow, the consistency in rent levels and the ability to maintain asking rents without significant concessions make this area attractive for investors seeking reliable returns. Stability ensures predictable cash flows and a steady demand for rental properties, making it a solid choice for long-term investments.
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.