Location: Sampson County, NC | Metro: Duplin County, NC
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 | $800 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,050 | $101,857 | 1.03% | B |
| 3BR | $1,250 | $175,311 | 0.71% | D |
| 4BR | $1,450 | $230,613 | 0.63% | D |
U.S. Census Bureau data (2024)
The ZIP code 28398, located in Warsaw, North Carolina, presents a unique opportunity for real-estate investors looking to balance yield and stability. The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is projected at $1,010, which is notably higher than the market rent of $924. This discrepancy indicates a potential for higher rental yields if properties can be rented at or near the FMR rates.
However, the median home value of $151,625 suggests that the capital investment required for purchasing property in this area is relatively modest compared to other markets. This makes it feasible for small-portfolio investors to enter and potentially benefit from the higher FMRs without needing substantial upfront capital.
Stability in this market is somewhat mixed. With 45.8% of residents being renters, there is a decent-sized tenant pool available. However, the lack of data on the average days on market (DOM) could indicate either a stable market where homes are quickly rented out, or an unpredictable market where rental vacancies persist longer than average. The median household income of $47,458 provides insight into the economic conditions of the area, suggesting that while tenants may have stable incomes, they might also be sensitive to price increases.
Given these factors, ZIP 28398 leans towards being a high-yield/low-stability market. The significant gap between the FMR and market rent points towards the possibility of flipping properties to capture higher rents, though the risk of vacancy periods must be considered due to the lack of DOM data. For steady cash flow, investors should focus on maintaining competitive rental rates and ensuring property quality to attract and retain tenants.
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.