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The North Carolina Department of Commerce released the county tier rankings for 2025 on Monday, Dec. 2.

The rankings are a three-tier system that assesses each county’s economic status, and tiers help determine state funding opportunities to assist in economic development. North Carolina has been using this system since 2007.

According to the state statute guidelines, 40 of the state’s counties are designated Tier One, 40 are Tier Two, and the remaining 20 are Tier Three. Counties falling into Tier One are considered the most economically distressed while Tier Three is the least distressed.

The annual tier rankings are calculated with four factors: average unemployment rate, median household income, percentage growth in population, and adjusted property tax base per capita.

Since the inception of the tier system, three of the four counties in the Roanoke-Chowan area (Bertie, Hertford, and Northampton) have consistently been ranked Tier One.

Gates County, however, has fluctuated between Tier One and Tier Two a few times over the years.

The county started initially with a Tier One ranking in 2007, rose to Tier Two in 2012, but then dropped back down to Tier One for the next several years. In 2020, they regained Tier Two status, but again, dropped back to Tier One in 2024.

But the rankings for 2025 show another move for Gates County.

According to NC Department of Commerce data, the change in tier status was thanks to improvements in the county’s unemployment data (improved by 14 positions) and its adjusted property tax base per capita rank (improved by eight positions).

In the overall economic distress ranking, the county went from 38 to 48 (out of 100 counties). Higher numbers indicate less economic distress.

For Gates County, the data showed $110,515 as the adjusted property tax base per capita for FY25, while the county’s population growth was a negative 1.35 percent. The median household income for 2022 was $66,561, and the 12-month unemployment average was 3.34 percent.

Gates County Manager Scott Sauer said, “the state’s economic indicators do not adequately capture the economic vitality of a county’s true sustainability or livability in my experience.”

He noted that the county has no hospital, no community college facility, and no major grocery store. But they’re in a higher tier than Pitt County, which is home to Greenville, East Carolina University, and the headquarters for ECU Health.

“Pitt County and Greenville are a major economic driver for the eastern end of the state, with significant commercial and retail commerce activity – and growth,” Sauer stated.

He pointed out that Hertford County is Tier One as well, but has the benefits of investment by Nucor, for example, and is home to ECU Health Roanoke-Chowan Hospital.

He compared Gates County to Harnett County, where he used to live. Sauer noted that Harnett County has Campbell University, a growing number of housing developments, and a military training facility. Perhaps the one thing they have in common, he added, was that both counties have state parks to provide recreational opportunities.

“I worked in county government since 1985, and in NC county government since 1991 – and the Tier Rankings introduced in 2007 have provided many challenges and headaches in the six counties I have served,” he concluded.

The other three Roanoke-Chowan counties remained in Tier One based on the four factors that the NC Department of Commerce uses to determine the designations.

Bertie had an economic distress rank of 4 (out of 100 counties). Their adjusted property tax base per capita was $97,297 and their population growth was a negative 5.2 percent. The county’s median household income was $44,434 and the 12-month unemployment average was 4.75 percent.

Hertford County’s economic distress rank was 3 (out of 100 counties). Their adjusted property tax base per capita was $101,447 and the population growth was a negative 5.8 percent. The median household income was $43,871 and the 12-month unemployment average was 4.98 percent.

Northampton County had an economic distress rank of 18 (out of 100 counties). Their adjusted property tax base per capita was $139,713 and the population growth was a negative 3.88 percent. The median household income was $51,550 and the 12-month unemployment average was 4.43 percent.

Out of North Carolina’s 100 counties, Scotland was listed as the most economically distressed and Currituck was the least distressed.

Tier designations determine eligibility and guidelines for several different grant programs administered by NC Department of Commerce including the One North Carolina Fund, building reuse, and water and sewer infrastructure grants, among others. They also play a part in the state’s Job Development Investment Grant program.