People from large urban areas are moving to North Carolina “in droves,” according to a report from The Fayetteville Observer, helping to keep the demand for rental property in Fayetteville, NC, strong and steady.
Here are 13 areas in and around Fayetteville in which to consider investing, including one suburb that is almost entirely occupied by renters.
Key takeaways
- Fayetteville is home to 208,501 in the city and about 527,000 in the metropolitan area.
- Large communities and suburbs of Fayetteville include Fort Bragg, Hope Mills, and Spring Lake.
- Home values in Fayetteville increased by 19.4% year over year, while rents for 3-bedroom homes grew by 17%.
- About 50% of the households in metropolitan Fayetteville are occupied by renters.
- Cities with large percentages of renters include Fayetteville, Spring Lake, and Dunn.
>>Explore Roofstock's Fayetteville investment properties.
Why invest in Fayetteville, NC?
Real estate investors looking for a market with slow and steady growth might want to take a closer look at Fayetteville, North Carolina. According to the most recent census, the population of the city has grown by about 4% since 2010, is currently growing at 0.43% annually, and is projected to add another 20,000 new residents over the next 10 years. However, it should be noted that this population growth has been almost entirely due to annexation.
Job growth in Fayetteville is slow and steady, as well, with the job market predicted to grow by more than 30% over the next 10 years. Although there are only 527,000 residents living in the metro area, the economy is exceptionally diverse.
Major employers in the region include Fort Bragg military base, the Department of Defense, Cape Fear Valley Health System, the public school system, several colleges and universities, and Goodyear Tire and Rubber Company.
The median value of a typical home in Fayetteville is $168,960, and values have gone up by more than 19% over the past year, according to Zillow (through January 31, 2022).
The demand for rental property in Fayetteville is also strong and steady. Zumper reports that 50% of households in the metro area are occupied by renters, and rents on 3-bedroom homes have increased by 17% year over year, as of February 2022.
13 great areas in Fayetteville for investment properties
Fayetteville, North Carolina, is home to dozens of neighborhoods in the city and surrounding suburbs, with a median listing home price of $180,000, according to Realtor.com (January 2022).
Here are 13 areas in and around Fayetteville in which to consider investing in rental property, with neighborhood-level data and rankings from Realtor.com and Niche.com.
Fayetteville
Fayetteville is home to over 208,500 residents and 8 unique neighborhoods. Listing prices have been steadily trending up at 12.4% year over year. Over 50% of Fayetteville residents rent their homes, and rents for 3-bedroom homes have increased by 14% year over year, according to Zumper:
- Population: 208,501
- Median listing price: $180,000
- Change in listing price (year over year): 12.4%
- Days on market: 70
- Median rent: $947
- Renter-occupied households: 56%
- Median household income: $45,024
- ZIP codes: 28301, 28304, 28309, 28312
Spring Lake
Spring Lake is about 20 minutes north of Fayetteville, near Pope Field and Fort Bragg. Spring Lake is ranked as the best place to live in the Fayetteville area, and most residents rent their homes:
- Population: 12,119
- Median list price: $261,900
- Change in list price (year over year): 21.4%
- Median sold price: $299,900
- Days on market: 50
- Median rent: $1,032
- Renter-occupied households: 80%
- Median household income: $39,559
- ZIP codes: 28307, 28390
Rockfish
Rockfish is located 30 minutes southwest of Fayetteville and is ranked as one of the best suburbs in the Fayetteville area. The small town of Rockfish has a rural feel and is known as the Rockfish capital of the world:
- Population: 3,523
- Median listing price: $190,000
- Change in listing price (year over year): 25.8%
- Median rent: $1,158
- Renter-occupied households: 20%
- Median household income: $63,796
- ZIP code: 28376
Hope Mills
Niche.com ranked Hope Mills as one of the best Fayetteville-area suburbs. The city has a sparse suburban feel, and more than one in 3 residents rent their homes:
- Population: 15,769
- Median listing price: $193,500
- Change in listing price (year over year): 0%
- Median rent: $928
- Renter-occupied households: 37%
- Median household income: $48,948
- ZIP code: 28348
Dunn
Dunn is located 35 minutes northeast of Fayetteville via I-95, on the way to Raleigh, and about an hour from Research Triangle Park. The city has a sparse suburban feel, and nearly half of residents rent their homes:
- Population: 9,664
- Median listing price: $212,400
- Change in listing price (year over year): 14.9%
- Median rent: $731
- Renter-occupied households: 49%
- Median household income: $30,561
- ZIP codes: 28334, 28335
Erwin
Erwin is a few minutes northwest of Dunn, along East Jackson Boulevard. The town has a rural feel, and more than one in 3 residents rent their homes:
- Population: 5,035
- Median sale price: $199,500
- Change in sale price (year over year): 30.8%
- Days on market: 56
- Median rent: $824
- Renter-occupied households: 36%
- Median household income: $40,714
- ZIP code: 28339
Raeford
The city of Raeford is 40 minutes west of Fayetteville, along Highway 401. Raeford has a sparse suburban feel, and nearly half of households are occupied by renters:
- Population: 4,926
- Median listing price: $220,000
- Change in listing price (year over year): 12.9%
- Median sale price: $201,000
- Days on market: 39
- Median rent: $753
- Renter-occupied households: 43%
- Median household income: $36,523
- ZIP code: 28376
Red Springs
Nearly half of residents in Red Springs rent their homes. Located 40 minutes southwest of Fayetteville, the small town of Red Springs has a sparse suburban feel and is near the University of North Carolina at Pembroke:
- Population: 3,378
- Median listing price: $135,000
- Change in listing price (year over year): 32.4%
- Median rent: $494
- Renter-occupied households: 47%
- Median household income: $26,829
- ZIP code: 28377
Vander
The small town of Vander is a 10 minutes southeast of Fayetteville, at the intersection of I-95 and Route 24. Vander has a suburban-rural feel, and more than one in 3 households are occupied by renters:
- Population: 1,006
- Median listing price: $279,300
- Change in listing price (year over year): 10.5%
- Median rent: $814
- Renter-occupied households: 38%
- Median household income: $37,423
- ZIP code: 28312
St. Pauls
St. Pauls is another small suburb of Fayetteville popular with renters. Located 30 minutes south of the city via I-95, St. Pauls has a suburban-rural feel, and almost half of the residents rent their homes:
- Population: 2,107
- Median home value: $81,100
- Listing price range: $8,000 to $795,000
- Median rent: $630
- Renter-occupied households: 48%
- Median household income: $29,583
- ZIP code: 28384
Eastover
Suburban Eastover is a few minutes northeast of Fayetteville via I-95. The town has a suburban-rural feel, and nearly one in 3 households are occupied by renters:
- Population: 3,710
- Median listing price: $250,300
- Change in listing price (year over year): -22%
- Median rent: $775
- Renter-occupied households: 31%
- Median household income: $53,526
- ZIP codes: 28312, 28395
Silver City
The small town of Silver City is 40 minutes west of Fayetteville via Highway 401, immediately north of Raeford, and has a suburban-rural feel:
- Population: 949
- Recent sales prices: $45,000
- Median rent: $810
- Renter-occupied households: 24%
- Median household income: $25,281
- ZIP code: 28376
Ashley Heights
Ashely Heights is an hour west of Fayetteville, near the intersection of Highway 1 and Highway 501. The small town has a suburban-rural feel, and nearly half of residents rent their homes:
- Population: 453
- Median listing price: $296,700
- Median rent: $609
- Renter-occupied households: 46%
- Median household income: $21,579
- ZIP code: 28315
>>Explore Roofstock's Fayetteville investment properties.
