Fayetteville
Investment Analysis

Fayetteville, NC
Investor Report

Comprehensive real estate investment analysis with cap rates, rental yields, and risk assessment.

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53
Investment Score
Strong Buy
Cap Rate (Est.)
3.4%
Gross Yield
5.7%
P/R Ratio
14.2x
YoY Growth
+0.0%
Median Home Price
$236,000
Average Rent (1BR)
$1,120/mo
Median Income
$59,732
Population
209,751

Investment Breakdown

57
Value Score
50
Growth Score
43
Safety Score
59
Afford Score

Fayetteville has a price-to-rent ratio of 14.2x, which indicates buying is significantly better than renting.

The estimated cap rate of 3.4% is below average, typical of appreciation-focused markets.

Year-over-year price growth of +0.0% suggests a cooling market.

Rental Cash Flow Analysis

Monthly Income

Gross Rent $1,120
Annual Gross $13,440

Est. Monthly Expenses

Property Tax (~1.5%) -$295
Insurance (~0.5%) -$98
Maintenance (~1%) -$197
Est. Net Cash Flow $530/mo

Price Forecast 2026โ€“2028

๐Ÿ”ฎ Fayetteville Price Forecast 2026โ€“2028

Based on 5-year Zillow ZHVI trend analysis ยท Statistical projection
๐Ÿ“ˆ Upward Trend
PROJECTEDNOW$221K2027$251Kโ–ฒ 13.7%2028$266Kโ–ฒ 20.6%20232024Now
$280K$191K
Current
$236K
2026
Projected
$251K
โ†‘ 13.7% by 2027
Projected
$266K
โ†‘ 20.6% by 2028
5yr CAGR:+8.1%
Confidence:High
Rยฒ:0.88
โ–ผ

The Fayetteville housing market forecast for 2026-2028 suggests a period of stabilization and modest growth, diverging from the rapid appreciation seen in prior years. After a remarkable 50.2% price surge over the last half-decade, culminating in a 5-Year CAGR of 8.3%, the market is showing signs of normalization. Current data indicates a slight cooling, with a YoY Price Change of -0.2%, reflecting broader economic headwinds and higher interest rates. The local economy, heavily anchored by Fort Liberty (formerly Fort Bragg), provides a stable foundation of demand, but affordability is becoming a concern. With a Median Home Price of $220,765 and a Price-to-Rent Ratio of 15.3x, the area remains more accessible than the national average, yet the buying decision is no longer a clear-cut investment play.

For prospective buyers and investors asking "will Fayetteville home prices drop," the data points toward a soft landing rather than a sharp correction. The Risk Grade of A and a Market Temperature of 62/100 signal a balanced environment, supported by a relatively quick Days on Market of 43. While the 5-year price range of $146,948 to $221,223 shows significant appreciation, the current Buy/Rent Verdict is NEUTRAL, suggesting that while buying builds equity, renting offers flexibility without sacrificing much on monthly costs, given the Median Rent of $1,120/mo. Growth in sectors like healthcare and logistics tied to the military base could provide tailwinds, but rising inventory and affordability constraints may cap significant gains. This creates a sustainable path forward for the Fayetteville real estate Fayetteville 2027 landscape.

Projected Cap Rate (2027)
3.3%
5yr CAGR
+8.1%

Job Market

Unemployment 3.5%
National avg: 3.7%
Job Growth (YoY) +2.5%

Healthcare

73
Score
Good

Risk Factors

High Crime Area

Market Activity

Source: Redfin ยท 2026-01-31
Sale-to-List 97.5%
Months Supply 4.2
Price Drops 29%
Gone in 2 Wks 26%

Market Position

Affordability Below Avg
Safety Higher Risk

ROI Projector Estimate your total return

Adjust the sliders to model different investment scenarios for Fayetteville.

Total ROI
-84%
on $47,200 invested
Annual ROI
-30.3%
compounded
Total Return
-$39,429
appreciation + cashflow
Mo. Cash Flow
-$757
year 1 estimate
Equity Growth Over 5 Years
Y149kY251kY353kY456kY558k
Appreciation
$0
Cash Flow
-$39,429
Final Equity
$58,264

* Estimates based on 0.0% annual appreciation, 3% rent growth, 5% vacancy. Does not include closing costs, tax benefits, or capital gains tax. For illustrative purposes only.

Rental Investment Calculator Estimate your monthly cashflow

Rental Income Estimator

Pre-filled for Fayetteville

Property

Purchase Price$236,000
Monthly Rent$1,120
Down Payment20%

Financing

Interest Rate6.5%

Expenses

Property Tax1.2%
Insurance (Annual)$1,500
Maintenance Reserve1%
Vacancy Rate5%
Property Management0%
HOA (Monthly)$0
-$687
Monthly Cash Flow
-$8,244/ year
-17.5%
Cash-on-Cash
2.6%
Cap Rate

Monthly Breakdown

+ Rental Income$1,120
โˆ’ Mortgage (P&I)$1,193
โˆ’ Property Tax$236
โˆ’ Insurance$125
โˆ’ Maintenance$197
โˆ’ Vacancy Loss$56
= Net Cash Flow-$687

Investment Summary

Down Payment
$47,200
Loan Amount
$188,800
Total Monthly Expenses
$1,807
Gross Yield
5.7%

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Investment decisions should be made after consulting with qualified professionals. Data sources include Zillow, Census Bureau, and BLS. Cap rates and yields are estimates based on available data.

Last updated: March 2026