In 2026, eighteen counties across North Carolina will experience changes in their economic development tier classifications, with an equal split between those improving and those facing increased economic challenges. Nine counties—Beaufort, Camden, Davie, Graham, Macon, Montgomery, Randolph, Stanly, and Surry—will move into lower-distress categories, reflecting improvements in local economic conditions. Conversely, nine others—Buncombe, Burke, Granville, Haywood, Henderson, Jones, Madison, Pasquotank, and Yancey—will be reclassified into higher-distress tiers. n nThese tier designations, mandated by state legislation, influence access to various economic development initiatives. The North Carolina Department of Commerce assigns each county a ranking from Tier 1 to Tier 3 based on four key indicators: unemployment rate, median household income, population growth, and per capita assessed property value. Tier 1 represents areas with the greatest economic hardship, while Tier 3 includes those that are more economically stable. n nBy law, the state must designate 40 counties as Tier 1, 40 as Tier 2, and 20 as Tier 3. These rankings directly affect eligibility for multiple grant programs managed by N.C. Commerce, such as the One North Carolina Fund, building reuse incentives, and water and sewer infrastructure funding. Additionally, they factor into the Job Development Investment Grant program, which uses tier status to direct resources through the Industrial Development Fund – Utility Account toward infrastructure upgrades in regions needing greater support. n
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18 NC counties change places in 2026 economic development tier rankings
Eighteen counties will change tier designations related to economic distress in 2026, equally divided by nine counties moving to a less distressed tier ranking and nine moving to a more distressed tier ranking. n nCounties moving to a less distressed tier ranking include Beaufort, Camden, Davie, Graham, Macon, Montgomery, Randolph, Stanly, and Surry. n nCounties moving to a more distressed tier ranking include Buncombe, Burke, Granville, Haywood, Henderson, Jones, Madison, Pasquotank, and Yancey. n nThe designations, which are required by state law, play a role in several programs that assist in economic development. n nN.C. Commerce determines the rankings using four economic factors. Each county is then assigned its tier designation ranking from one to three. Tier 1 counties are generally the most economically distressed and Tier 3 counties are generally the least economically distressed. n nThe rankings are based on an assessment of each county’s unemployment rate, median household income, population growth and assessed property value per capita. The law calls for 40 counties to be designated as Tier 1, 40 counties to be designated as Tier 2, and 20 counties to be designated Tier 3. n nTier designations determine eligibility and guidelines for several different grant programs that N.C. Commerce administers including the One North Carolina Fund, building reuse, and water and sewer infrastructure grants among others. Tier designations also play a role in the state’s performance-based Job Development Investment Grant program, serving as a mechanism to channel funds into the Industrial Development Fund – Utility Account for infrastructure improvements into more economically distressed areas of the state. n n2026 County Tier Designations