Five Points Raleigh Delivers 7.9% Rental Yield, Beats Other Neighborhoods

Five Points posted the highest rental yields among Raleigh suburbs in the second quarter of 2026, according to Wake County property records released this week. Investors closed 14 purchases on streets such as Oberlin Road and Fairview Road with average gross yields of 7.9 percent.

The figures matter now because mortgage rates have held above 6.5 percent since March, pushing buyers toward cash-flow properties rather than pure appreciation plays. Local lenders report applications for investment loans in Raleigh rose 22 percent year-over-year through June.

Local anchors driving demand

Proximity to North Carolina State University and the ongoing expansion of the Raleigh Housing Authority’s voucher program keep occupancy rates above 94 percent in the neighborhood. Tenants also walk to Cameron Village for groceries and services, cutting commute costs that matter in a city where gas prices averaged $3.19 a gallon last month.

Recent city permits show three new duplex conversions approved on Clark Avenue alone since January, adding 12 rental units that leased within 18 days of completion at $1,950 each.

Price and return data

Median sale prices for two- and three-bedroom homes in Five Points reached $285,000 in the April-June period, up 4 percent from the same quarter in 2025. Average monthly rents hit $2,050, producing the 7.9 percent yield after standard vacancy and maintenance allowances. Comparable figures for North Hills stand at 5.4 percent and for Boylan Heights at 6.1 percent.

Investors eyeing entry should review listings on Oberlin Road and Fairview Road first, then run numbers through the Wake County tax assessor portal before offers. Properties under contract in the first week of July closed 3 percent below asking when cash offers included quick due-diligence periods under 10 days.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.