Section 8 Fair Market Rent (FMR) for ZIP 28394 - 2027

Location: Pinehurst-Southern Pines, NC | Metro: Pinehurst-Southern Pines, NC MSA

Investment Score for ZIP 28394

D
Monthly Rent (2BR)
$1,550
Median Price (2BR)
$212,198
1% Rule
0.73%
Annual Yield
8.77%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$1,330
1 Bedroom$1,420
2 Bedrooms$1,550
3 Bedrooms$2,160
4 Bedrooms$2,610
5 Bedrooms$3,028
6 Bedrooms$3,391
7 Bedrooms$3,662
8 Bedrooms$3,845

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $1,550 $212,198 0.73% D
3BR $2,160 $350,413 0.62% D
4BR $2,610 $420,205 0.62% D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
5,936
Median Household Income
$79,643
Housing Units
2,794
Renter Percentage
20.5%
Occupancy Rate
83.4%
Renter Occupied
478

The real estate landscape in ZIP code 28394, Vass, NC, suggests a market where pricing power remains strong for the immediate future. With a median home value at $361,498, the area reflects a stable housing economy. The fact that only 0.2% of listings have been reduced indicates that sellers are maintaining their asking prices, a sign that demand is keeping pace with supply.

The median days on market (DOM) being listed as N/A points to a low inventory situation, which typically favors sellers. This scarcity of available homes supports the notion that pricing power will likely persist for the next 12-24 months. Landlords and small-portfolio investors can expect to maintain current pricing levels without significant pressure to reduce prices.

On the rental side, the Forward Market Rent (FMR) for the metro area in fiscal year 2026 is projected at $1,720, while the current market rent, as measured by Zillow's Observed Rental Index (ZORI), stands at $2,100. This gap between FMR and ZORI signals that rental rates in Vass, NC, are above the anticipated government benchmark, indicating a robust rental market. Investors can leverage this dynamic to secure steady income from rental properties, assuming they can manage the properties effectively.

For long-term hold investors, the setup in Vass, NC, implies limited potential for significant appreciation. The current market conditions suggest a balanced approach where maintaining property values and securing reliable rental income are more realistic goals than achieving substantial capital gains. This scenario underscores the importance of diversifying investment strategies to include both sale and rental considerations.

In summary, the combination of a high median home value, minimal price reductions, and a tight inventory market supports a strong seller's position. On the rental front, current rates exceeding FMR projections indicate a favorable environment for generating consistent rental revenue. However, the appreciation thesis appears modest, aligning with a conservative growth outlook for the region.

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.