Location: Hickory-Lenoir-Morganton, NC | Metro: Hickory-Lenoir-Morganton, 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 | $1,050 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,860 |
| 5 Bedrooms | $2,158 |
| 6 Bedrooms | $2,417 |
| 7 Bedrooms | $2,610 |
| 8 Bedrooms | $2,741 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,050 | $127,974 | 0.82% | C |
| 2BR | $1,250 | $170,633 | 0.73% | D |
| 3BR | $1,520 | $275,336 | 0.55% | F |
| 4BR | $1,860 | $392,059 | 0.47% | F |
| 5BR | $2,158 | $421,677 | 0.51% | F |
U.S. Census Bureau data (2024)
The ZIP code 28602 in Hickory, NC, presents a dynamic housing market with distinct characteristics that influence its trajectory. The Fair Market Rent (FMR) for the area is set at $1060 for fiscal year 2024, which is significantly lower than the actual market rent, measured by Zillow's Rent Index (ZORI) at $1,385. This disparity suggests that the rental market is robust and potentially under pressure due to higher demand than supply.
The low price-cut share of 0.3% indicates that landlords and sellers are not frequently reducing their asking prices, implying a stable market where properties are likely selling or renting close to their initial asking rates. The median home value stands at $252,592, reflecting a middle-class neighborhood where homeownership is attainable but requires careful financial planning.
A key indicator of the market dynamics is the 37.1% renter share, which is notably high. In areas with a significant portion of renters, there tends to be an ongoing need for rental properties, creating long-term housing pressure. Landlords and small-portfolio investors can expect steady demand for rental units, given that nearly 4 out of every 10 residents are tenants.
The absence of data on days on market (DOM) makes it challenging to assess the speed at which homes are being sold. However, the combination of a strong rental market and a relatively low price-cut share suggests that the demand for both rentals and sales in ZIP 28602 is robust. Investors should consider the potential for rental income and the stability of property values when making investment decisions in this area.
In summary, ZIP 28602 is a market characterized by a healthy rental sector and a stable sales environment. The high renter share points to sustained demand for rental properties, while the gap between FMR and ZORI highlights a competitive rental market. For those looking to invest in real estate, especially through Section 8, the dynamics in Hickory suggest a favorable climate where investments are likely to yield consistent returns without the necessity for frequent price adjustments.
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.