How To Evaluate Townhome Investments In Dunn
May 28, 2026
May 28, 2026
If you are looking at townhomes in Dunn as an investment, it is easy to focus on the purchase price and projected rent. But in a smaller market like Dunn, the better question is whether the property has the right legal setup, cost structure, and location to perform well over time. This guide will help you evaluate Dunn townhome deals with a practical, local lens so you can compare opportunities more confidently. Let’s dive in.
Dunn is a smaller city, with an estimated 2024 population of 8,754. That matters because you are not evaluating investments in a large, deep rental market with endless comps. You are looking at a thinner pool of listings and tenants, which makes accuracy more important.
At the same time, Dunn has clear commuter appeal. The city highlights access to I-95, I-40, US 421, and US 301, and local data points to reasonable commute times plus access to the Harnett County Regional Jetport. For many investors, that means a Dunn townhome may work best when it appeals to renters who want practical access to work, travel routes, and everyday conveniences.
One of the biggest mistakes investors make is relying too heavily on broad market averages. In Dunn, Census data shows a median gross rent of $788, but active rental listings paint a much different picture, with asking rents around $1,400 to $1,600 and townhome rental listings around $1,500.
That gap tells you something important. Historical data gives you background, but current asking rents should lead your underwriting. In a market with only a small number of active townhome rentals, every comp matters.
Recent snapshots show only a handful of rentals in Dunn and just a couple of active townhome rentals. That means the comp set is thin, and you may need to compare nearby submarkets carefully when similar units are limited.
It also means you should be cautious about overly aggressive rent projections. If the local townhome inventory is small and the average market time is around 78 days for active townhome rentals, pricing too high can leave you sitting longer than expected.
In Dunn, townhomes are not all interchangeable. Current examples range from a roughly 1,046-square-foot 2-bedroom, 1-bath unit listed for $145,000 to a roughly 2,299-square-foot 3-bedroom, 2-bath unit listed for $419,900.
That is a wide spread in size, layout, and likely finish level. Instead of using a simple “townhome average,” compare units based on:
In Dunn, zoning is not a box to check at the end. It is one of the first steps in evaluating whether the investment works at all.
The city’s Unified Development Ordinance defines a townhome as a single-family attached dwelling with two or more units attached horizontally by common walls, with each unit on a separate lot and extending from ground to roof. Under the current UDO, townhomes are shown as special-use-permit-only in the R-7, RM, MXU, and C-1 districts.
If the existing use is not clearly lawful or if your future plan depends on approvals, your timeline, costs, and risk can change quickly. Before you get too far into projections, confirm whether the parcel is already established as a legal townhome use or whether additional approvals may be needed.
This is especially important if you are considering repositioning, redevelopment, or anything that changes how the property is currently used. In Dunn, the legal path should come before the cash flow spreadsheet.
A townhome that looks strong on paper can weaken fast if you underestimate taxes, utilities, and recurring city charges. In Dunn, those fixed costs deserve close attention because they can take a meaningful bite out of rent.
For 2025, city properties in Dunn show a combined tax rate of $1.261 per $100 of assessed value. Using that rate, annual taxes work out to about:
If the property is in Downtown Dunn’s municipal service district, there is also an added 12 cents on city taxes. That extra layer should be built into your numbers from the start.
If the townhome is inside city limits, a typical 3/4-inch meter has a minimum monthly water charge of $21.58 and a sewer base charge of $27.75 before usage. The city also lists a monthly garbage, yard waste, and recycling pickup charge of $27.84, along with a $5 residential stormwater minimum.
These are not huge line items on their own, but together they add up. In a smaller townhome with moderate rent, fixed monthly charges can absorb more income than many investors expect.
Outside city limits, minimum water and sewer charges are materially higher. That means a townhome on the edge of Dunn or in the extraterritorial jurisdiction may have a very different operating profile than one clearly inside city service areas.
Before you move forward, verify where the property sits and which rates apply. A small location difference can affect your monthly carrying costs in a very real way.
Attached housing often comes with operating details that are easy to overlook during the first pass. In Dunn, the UDO requires 2 parking spaces per attached dwelling unit, and at least 1 of those spaces must be outside an enclosed garage.
That requirement matters because parking is not just a planning issue. It can affect tenant convenience, leasing appeal, and the practicality of the site.
For residential developments with more than 2 units, Dunn also requires a community trash dumpster within a corral. If you are buying into a multi-unit setting or reviewing an HOA budget, trash infrastructure and common-area upkeep should be part of your review.
Townhome investors sometimes assume the attached format means fewer headaches. In reality, you still need to understand who handles exterior maintenance, shared spaces, parking areas, and any ongoing site compliance.
That is why operations should be priced alongside acquisition. A clean purchase price does not tell you the full story if the property carries avoidable common-area or maintenance burdens.
Dunn’s Inspections Department states that it enforces the Minimum Housing Code and rental-housing rules. That means compliance is an active part of ownership, not just a theoretical risk.
If you plan to hold a townhome as a rental, inspect the property with an eye toward ongoing standards, not just cosmetic updates. Small deferred-maintenance items can become bigger issues if they affect habitability or code compliance.
The city also states that it is under a system-wide sewer moratorium that is preventing new sewer connections while rehabilitation work continues. For most investors buying an existing townhome, that may not change day-to-day operations.
But if your strategy includes adding units, changing use, or pursuing a heavier value-add plan that affects utility demand, this becomes a serious due diligence item. It is worth checking early, before you close.
As of July 1, 2025, fire plan reviews and inspections are handled by Harnett County and billed separately from the city. If your investment plan includes improvements that trigger review, be sure that cost is in your budget.
In Dunn, location should be measured by practical daily value. The city emphasizes access to major road corridors, and local resources also highlight downtown development activity, parks, and recreation amenities.
For renters, that often translates into a simpler question: how easy is this property to live in and get around from? Townhomes near commuter corridors, downtown areas, or parks may be easier to market than units in less connected locations.
Dunn offers access to places like the Dunn Community Center, Tart Memorial Park, Tyler Park, and C.B. Codrington Park. While these features do not guarantee a higher rent on their own, they can support a property’s overall appeal.
In a smaller market, convenience and clarity matter. If you can easily explain why a location works for day-to-day living, that is usually a positive sign for leasing.
Dunn’s median household income was $46,830 in the 2020-2024 Census data, while Harnett County’s median household income was $71,287. Dunn also showed a higher poverty rate than the county overall.
For investors, the takeaway is simple. Do not price your rental based on countywide assumptions if the property will compete within Dunn’s city-level renter pool.
That does not mean a strong townhome cannot command a solid rent. It means your rent strategy should match the local tenant base, current listing competition, and the specific ZIP-level market you are serving.
If you are weighing two or three Dunn townhomes, use a process like this:
When you follow that order, you are less likely to get distracted by a low list price or a hopeful rent estimate. In Dunn, the better investment is often the one with fewer surprises.
The strongest townhome opportunities in Dunn usually share a few traits. They have a clear zoning path, straightforward parking and trash compliance, realistic local rent support, and fixed costs that still leave room for healthy performance.
They also tend to be easy to explain. If the property has practical commuter access, manageable operations, and a rent level that fits the local market, you are usually looking at a more durable investment story.
If you want help comparing Dunn townhome opportunities with a local, data-driven approach, Enrich Realty is here to help you evaluate the numbers, the location, and the tradeoffs with confidence.
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