We study properties of the zero and near-zero eigenmodes of the overlap Dirac operator in compact U (1) gauge theory. In the confinement phase the exact zero-modes are localized as found by studying the values of the inverse participation ratio and other features. Nonzero-eigenmodes are less localized in the confinement phase. In the Coulomb phase no zero-modes are observed and the eigenmodes show no localization at all.