Fayetteville NC Rental Property: DSCR Numbers by Town
DSCR Loans: North Carolina
Fayetteville NC Rental Property: The DSCR Numbers in Fayetteville, Hope Mills, Spring Lake, Hoke and Harnett
Fayetteville is the market where North Carolina rent math still works on a median priced house. The question is not whether the numbers clear 1.00. It is which town, which county and which bedroom count you buy.
The short answer
A median priced Fayetteville house rented at HUD's three bedroom benchmark covers its full payment about 1.54 times over at today's reference rate, one of the strongest ratios we see anywhere in North Carolina. HUD set the FY2027 Fair Market Rent for the Fayetteville area at $1,937 for a three bedroom, up from $1,667 a year earlier, while the city's Census median home value is $188,000. With a DSCR investor loan, which qualifies on the property's rent instead of your income, that combination is why investors keep looking at the towns around Fort Bragg.
Pillar Mortgage Group DSCR program at a glance
- Minimum DSCR
- As low as 0.50
- Cash out
- Up to 80% LTV, no ownership seasoning
- Gift funds
- 100% gift for down payment, closing costs and reserves
- Interest only
- 10 years IO on a 40 year term, or a 30 year term with IO
- First time investors
- Allowed, no primary residence or VOR needed
- Reserves
- None required under $1M loan amount and under 75% LTV
- Loan amount
- Up to $5 million
- Where we lend
- 35 states, Arizona plus 34 more
Program terms as of November 2026. Every loan is subject to underwriting and property eligibility. This is not a commitment to lend.
Our North Carolina DSCR loan page covers the state rules: attorney closings, the 10 day rent demand and LLC fees. If you are also looking at Charlotte, Raleigh or Greensboro, read our North Carolina reappraisal 2027 post first, because those counties reset values in January. This post stays in the Sandhills: Fayetteville, Hope Mills, Spring Lake and the two counties next door.
Every figure here was checked on November 6, 2026 against HUD User's FY2027 Fair Market Rents, Census Bureau QuickFacts and the North Carolina Department of Revenue's fiscal year 2026 to 2027 rate tables.
Why the rent jumped
The Fayetteville benchmark rose about 16% for three bedrooms and 18% for two bedrooms because HUD's newest survey data caught up with what recent movers actually pay.
HUD's own worksheet for the Fayetteville area starts from a five year Census two bedroom rent of $1,053. Then it applies a recent mover adjustment, because people who moved in the last year pay more than long time tenants. In Fayetteville the recent mover adjustment factor HUD applied was 1.3123, a large one, before inflation and trend factors took the two bedroom to $1,476. The Fayetteville area is also its own HUD rent area made up of Cumberland County alone, so Hoke and Harnett get separate benchmarks.
| HUD rent area | 2 bed FY2027 | 3 bed FY2027 | 4 bed FY2027 | 3 bed FY2026 |
|---|---|---|---|---|
| Fayetteville (Cumberland County) | $1,476 | $1,937 | $2,380 | $1,667 |
| Hoke County | $1,150 | $1,592 | $1,922 | $1,388 |
| Harnett County | $1,051 | $1,455 | $1,757 | $1,363 |
A higher benchmark does not change the lease on any one house. Use it to screen deals, then check it against real listings and the appraiser's rent schedule before you rely on it.
Same Fort Bragg demand, three HUD rent areas. A Raeford three bedroom is benchmarked $345 a month below one in Fayetteville.
Buying a Fayetteville area rental in North Carolina? Send us the address and the town it sits in. We will run the DSCR on the right tax rate and the HUD rent for that county before you offer.
The towns side by side
Spring Lake is a renter town, Hope Mills is an owner town and Fayetteville sits in between, and that shapes who you rent to.
| Place | Median home value | Owner occupied | Median gross rent (ACS) | Population, July 2025 |
|---|---|---|---|---|
| Fayetteville city | $188,000 | 47.4% | $1,250 | 209,120 |
| Hope Mills town | $190,600 | 66.5% | $1,141 | 18,324 |
| Spring Lake town | $124,000 | 19.8% | $1,351 | 11,252 |
| Cumberland County | $199,200 | 55.0% | $1,222 | 338,473 |
| Hoke County | $219,300 | 73.0% | $1,089 | 56,939 |
| Harnett County | $246,200 | 71.0% | $1,112 | 150,137 |
Spring Lake's owner occupied rate is 19.8%, so roughly four of every five households there rent, and its median gross rent of $1,351 is the highest in the table even though its median value is the lowest. That is what a town at the gate of a large Army post looks like. Hoke and Harnett run the other way, with seven in ten households owning.
Tax rates by town
North Carolina taxes rentals at full market value, and around Fayetteville the combined rate runs from about 0.49 per $100 in unincorporated Cumberland County to 1.24 in Spring Lake.
| Where the parcel sits | County rate | Town rate | Combined FY2027 | Effective combined (NCDOR) |
|---|---|---|---|---|
| City of Fayetteville | 0.499 | 0.4495 | 0.9485 | 0.9381 |
| Hope Mills | 0.499 | 0.525 | 1.024 | 1.0128 |
| Spring Lake | 0.499 | 0.741 | 1.24 | 1.2265 |
| Unincorporated Cumberland | 0.499 | none | 0.499 | 0.4935 |
| Raeford (Hoke) | 0.73 | 0.48 | 1.21 | 0.9292 |
| Unincorporated Hoke | 0.73 | none | 0.73 | 0.5606 |
| Unincorporated Harnett | 0.63 | none | 0.63 | 0.6201 |
Rates are per $100 of value from NCDOR and leave out fire and special district rates that apply to some parcels. Cumberland reappraised in 2025, so its effective rate is close to the posted one. Hoke County's sales assessment ratio is 0.768 on a 2022 reappraisal, which is why its effective rate sits so far below the posted one; Hoke's next scheduled reappraisal is 2030. Harnett reappraised in 2026, and its FY2027 budget ordinance cut the recommended county rate from $0.75 to $0.63 per $100.
Run the DSCR on your deal
DSCR calculator
Clears 1.00. Rent covers the full monthly payment.
- Principal and interest$1,678
- Property tax$250
- Insurance$120
- HOA dues$0
- Total monthly payment (PITIA)$2,048
- Monthly rent$2,200
Illustrative only. This is not a quote, a rate, an approval or a commitment to lend. Default values are placeholders, not Pillar Mortgage Group rates or terms. DSCR here is monthly rent divided by principal and interest (or interest only), property tax, insurance and HOA dues. A lender sets the rent figure it uses from the appraisal and lease, and every loan is subject to underwriting.
Want the real ratio on this property? Send us the address and the rent. We will run it the way a lender will and tell you where it lands.
The DSCR math
Every Cumberland County scenario clears 1.50 on a three bedroom, Hoke clears 1.10 and Harnett lands just under 1.00.
The setup: buy at the median value with 25% down, a 30 year fixed at Freddie Mac's 7.18% average from November 5, 2026 as a reference rate only (it is a conventional loan average, not a DSCR rate and not a rate we are quoting), NCDOR's effective combined rate for the tax bill and $1,890 a year of insurance. That premium is an example number, not market data and not a quote; it reflects the 5% average dwelling increase that took effect October 1, 2026. Rent is the HUD three bedroom benchmark for each county.
| Scenario | Loan | P and I | Monthly tax | DSCR, 30 year fixed | DSCR, interest only at 30% down |
|---|---|---|---|---|---|
| Fayetteville, $188,000 | $141,000 | $955 | $147 | 1.54 | 1.77 |
| Hope Mills, $190,600 | $142,950 | $968 | $161 | 1.51 | 1.73 |
| Spring Lake, $124,000 | $93,000 | $630 | $127 | 2.12 | 2.41 |
| Unincorporated Cumberland, $199,200 | $149,400 | $1,012 | $82 | 1.55 | 1.80 |
| Unincorporated Hoke, $219,300 | $164,475 | $1,114 | $102 | 1.16 | 1.35 |
| Raeford at Hoke's median, $219,300 | $164,475 | $1,114 | $170 | 1.10 | 1.28 |
| Unincorporated Harnett, $246,200 | $184,650 | $1,251 | $127 | 0.95 | 1.11 |
On these assumptions a Fayetteville three bedroom keeps clearing 1.00 up to roughly a $304,000 price. In unincorporated Hoke the line is about $259,000, and in unincorporated Harnett about $232,000, which is below Harnett's median.
Hoke and Harnett next door
Hoke and Harnett sell newer, bigger houses at higher prices against lower HUD rents, so they suit a buyer who wants an easier house to manage more than maximum cash flow.
The fix in Harnett is the bedroom count. A four bedroom at HUD's $1,757 benchmark lands near 1.14 at the county median and keeps clearing 1.00 up to roughly $286,000. In Hoke, the low effective rate does a lot of the work: until the 2030 reappraisal, the tax bill on an unincorporated Hoke house is the second lowest in this post.
Two bedrooms or three
In Cumberland County a two bedroom still clears 1.00, which is rare. In Hoke and Harnett it does not.
At the HUD two bedroom rent of $1,476, a Fayetteville house bought at the city median lands near 1.17, Hope Mills near 1.15 and Spring Lake near 1.61. A Fayetteville two bedroom keeps clearing 1.00 up to about $225,000. Across the line, Hoke's $1,150 two bedroom benchmark gives about 0.84 and Harnett's $1,051 about 0.68. Our ratio floor is 0.50, so those can still be financed, but three bedrooms are what these counties are built for.
Financing a Fayetteville rental
At Fayetteville prices, the program terms that matter most are the ones about cash, not the ratio.
- No reserves under $1 million and under 75% LTV. Almost every loan here is far under $1 million, so put a little more than 25% down and reserves can drop out of the file.
- 100% gift allowed. A gift can cover the down payment, closing costs and reserves, with no asset sourcing, no large deposit sourcing and no seasoning.
- First rental is fine. No primary residence ownership and no VOR required. Our DSCR loan for new investors guide covers that path.
- Cash out later. Up to 80% LTV with no ownership seasoning after a repair.
- Interest only. Ten years interest only on a 40 year term, or a 30 year term with interest only, up to 70% LTV on a purchase, which is why the interest only column above assumes 30% down.
- DSCR as low as 0.50, loans up to $5 million.
Our DSCR reserve requirements post shows exactly where the 75% line falls, and our loan programs page lists everything else we place.
Where it goes wrong
It goes wrong on turnover and condition, not on the benchmark.
Honest caveat: a market built around a military post moves on orders. Tenants arrive and leave on schedules you do not control, and a house that sits empty for a month between assignments costs you a twelfth of the year. Spring Lake's 2.12 ratio also reflects a $124,000 median, which usually means older, smaller houses. Price the roof, the HVAC and the turnover before you trust the ratio, and treat the HUD figure as a starting point; the lender uses the lease or the appraiser's rent schedule.
Military housing allowances are set by the Department of Defense separately from HUD rents, so do not assume a tenant's allowance equals the Fair Market Rent.
My Fayetteville checklist
- Confirm the town and county on the parcel. A Fayetteville mailing address can sit in Spring Lake, Hope Mills, unincorporated Cumberland or even Hoke.
- Use that county's HUD rent. Cumberland, Hoke and Harnett each have their own.
- Use the combined tax rate for that town. Spring Lake's 1.24 and unincorporated Cumberland's 0.499 are a big difference on the same price.
- Get a dwelling insurance quote, not a homeowners quote.
- Budget for turnover and an inspection.
- Send us the address. We run the DSCR the way the lender will and show you the down payment and payment.
Sources
All sources checked November 6, 2026. Data changes, so confirm before you rely on it.
- HUD User, FY2027 Fair Market Rents, Cumberland County, NC (Fayetteville, NC HUD Metro FMR Area). Efficiency $1,302, 1 bed $1,334, 2 bed $1,476, 3 bed $1,937, 4 bed $2,380 (FY2026 $1,090, $1,113, $1,251, $1,667, $2,068); area is Cumberland County alone; base rent $1,053; recent mover adjustment factor 1.3123
- HUD User, FY2027 Fair Market Rents, Hoke County and Harnett County, NC. Hoke: 2 bed $1,150, 3 bed $1,592, 4 bed $1,922 (FY2026 3 bed $1,388); Harnett: 2 bed $1,051, 3 bed $1,455, 4 bed $1,757 (FY2026 3 bed $1,363)
- U.S. Census Bureau QuickFacts, Fayetteville city, Hope Mills town, Spring Lake town, Cumberland, Hoke and Harnett counties, North Carolina. Median value of owner occupied housing units, owner occupied rate and median gross rent, ACS 2020 to 2024; population estimates July 1, 2025 (V2025)
- North Carolina Department of Revenue, Fiscal Year 2026 to 2027 County and Municipal Property Tax Rates and Year of Most Recent Reappraisal. Cumberland 0.499 (2025 reappraisal, ratio 0.9891), Fayetteville 0.4495, Hope Mills 0.525, Spring Lake 0.741; Hoke 0.73 (2022, ratio 0.768), Raeford 0.48; Harnett 0.63 (2026, ratio 0.9843); effective combined rates as shown
- North Carolina Department of Revenue, 2026 to 2027 Property Tax Rates and Reappraisal Schedules for North Carolina Counties. Next scheduled reappraisal: Cumberland 2031, Hoke 2030, Harnett 2030
- Harnett County Fiscal Year 2027 Budget Ordinance, amended July 14, 2026. General fund levy $0.63 per $100; board reduced the recommended rate from $0.75 to $0.63 after the 2026 reappraisal
- North Carolina Department of Insurance, dwelling rate settlement (April 22, 2026). Average statewide dwelling increase of 5% effective October 1, 2026, varying by territory
- Freddie Mac Primary Mortgage Market Survey. 30 year fixed average 7.18% as of November 5, 2026 (reference only)
Frequently asked questions
Is Fayetteville, NC a good place to buy a rental property?
On public numbers it is one of the strongest North Carolina markets for rent compared to price. HUD's FY2027 three bedroom Fair Market Rent for the Fayetteville area is $1,937 and the city's median home value is $188,000, so a median priced three bedroom lands near a 1.54 DSCR with 25% down at a 7.18% reference rate. Condition and turnover decide whether a specific house works.
What is the Fair Market Rent in Fayetteville, NC for 2027?
HUD's FY2027 Fair Market Rents for the Fayetteville area, which is Cumberland County alone, are $1,476 for a two bedroom, $1,937 for a three bedroom and $2,380 for a four bedroom, up from $1,251, $1,667 and $2,068 in FY2026.
What is the property tax rate in Fayetteville, NC?
For fiscal year 2026 to 2027 the Cumberland County rate is 0.499 per $100 and the City of Fayetteville adds 0.4495, a combined 0.9485 per $100 of value. Hope Mills combines to 1.024 and Spring Lake to 1.24.
Is Hoke County or Harnett County better than Fayetteville for a rental?
Usually not for cash flow. Both have lower HUD rents and higher median values than Fayetteville, so a median three bedroom lands near 1.16 in unincorporated Hoke and 0.95 in unincorporated Harnett on our example numbers, against 1.54 in Fayetteville. They can suit buyers who want newer houses.
Can I get a DSCR loan on a Fayetteville rental?
Yes. North Carolina is one of the 35 states where Pillar Mortgage Group places DSCR loans. The loan qualifies on the property's rent against the full payment, with ratios as low as 0.50 and no tax returns or W2s.
Can a first time investor buy a rental near Fort Bragg with a DSCR loan?
Yes. Our DSCR loans allow first time investors with no primary residence ownership and no verification of rent. A 100% gift can cover the down payment, closing costs and reserves.
Why Pillar Mortgage Group
A brokerage built for rental investors. That difference is the whole point.
We are a brokerage. We price your DSCR file across the wholesale lenders we work with and bring you the one that fits the deal, instead of the only product on one bank's shelf.
DSCR loans qualify on the rent, not your tax returns. Ratios as low as 0.50, loans up to $5 million, and first time investors welcome.
Arizona plus 34 more states, from Alabama to Wyoming. One team for the whole portfolio, wherever the next door is.
If the numbers do not work, we say so before you spend money on an appraisal. We would rather tell you in week one than sell you a loan you should not take.
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This content is for informational and educational purposes only and does not constitute financial, legal, or tax advice. Mortgage rates, loan programs, and market conditions are subject to change without notice. Not a commitment to lend. All loans subject to credit approval. Third-party market data sourced from publicly available information. Pillar Mortgage Group conducts business in accordance with the Fair Housing Act and the Equal Credit Opportunity Act.
