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 | $1,050 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,710 |
| 4 Bedrooms | $2,060 |
| 5 Bedrooms | $2,390 |
| 6 Bedrooms | $2,677 |
| 7 Bedrooms | $2,891 |
| 8 Bedrooms | $3,036 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,230 | $304,506 | 0.4% | F |
| 3BR | $1,710 | $429,872 | 0.4% | F |
| 4BR | $2,060 | $619,377 | 0.33% | F |
| 5BR | $2,390 | $722,086 | 0.33% | F |
U.S. Census Bureau data (2024)
If a landlord is considering purchasing a property in ZIP code 28387 (Southern Pines, NC) for Section 8 purposes, they should follow this decision tree:
1) Does the Fair Market Rent (FMR) of $1,350 cover the debt service on a $452,099 property?
No. The FMR of $1,350 is unlikely to fully cover the debt service on a property priced at $452,099. Typically, debt service includes mortgage payments, property taxes, insurance, and maintenance costs. A property of that value would likely require a higher rental income to meet these obligations.
2) Is the market rent ($1,878 ZORI) above, at, or below the FMR?
The market rent of $1,878 is above the FMR of $1,350. This indicates that properties in Southern Pines, NC are generally rented at rates higher than what is considered fair market value for Section 8 housing. Therefore, landlords seeking to use their properties for market-rate tenants might find better returns compared to relying solely on Section 8.
3) Are 44.5% renters plus a 47-day Days on Market (DOM) sufficient to ensure demand?
It depends. With 44.5% of the population being renters and an average DOM of 47 days, there appears to be a reasonable level of demand for rental properties. However, the key factor is whether the landlord can secure tenants willing to pay the ZORI rate of $1,878 or if they must rely on the lower FMR rate of $1,350. Given that market rents exceed the FMR, landlords could potentially focus on non-Section 8 tenants to maximize profitability.
If the landlord decides to exclusively target Section 8 tenants, the answer shifts to a clear "no." The FMR does not sufficiently cover the debt service on a high-value property, making it financially unviable without additional considerations such as subsidies or lower-cost financing options.
In summary, for a landlord asking if they should buy in ZIP 28387 for Section 8, the decision hinges on their ability to balance between market-rate and Section 8 rents. Given the financial constraints highlighted by the data, focusing on market-rate tenants seems more prudent unless the landlord has strategies to mitigate the financial shortfall associated with the FMR.
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.