Location: Orangeburg County, SC | Metro: Columbia, SC HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $930 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,470 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
U.S. Census Bureau data (2024)
When considering whether to purchase a property in ZIP code 29047 for Section 8 investment, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $1020 cover the debt service on a property valued at $171,785?
Yes. The FMR of $1020 is the amount that HUD determines to be sufficient to cover rental costs for a property of this size and quality. If your debt service (the total cost of monthly mortgage payments including principal, interest, taxes, and insurance) is less than or equal to $1020, then the FMR can support your investment. For example, if you have a $1,000 monthly mortgage payment, the answer is yes.
No. If your debt service exceeds $1020, the FMR cannot fully support your investment. In this case, purchasing a property in ZIP 29047 for Section 8 would not be advisable unless you plan to supplement the income with other sources or have a different financial strategy.
2) Is the market rent of $1,014 above, at, or below the FMR?
Above FMR. With market rent slightly above the FMR at $1,014, there is potential to earn more than the FMR if you do not limit yourself to only Section 8 tenants. This can be advantageous if you want flexibility in tenant selection.
At or Below FMR. If you aim to exclusively serve Section 8 tenants, the market rent being at par with the FMR means you will receive exactly what the FMR stipulates. There is little room for profit beyond covering your expenses.
3) Are 18.6% of residents renters, and does the 'N/A-day' Days on Market (DOM) indicate sufficient demand?
It Depends. While 18.6% of residents being renters suggests a moderate level of demand, the lack of data on DOM makes it difficult to assess how quickly properties are rented out. If the DOM is low, indicating quick rentals, the demand is strong. However, without DOM data, you must rely on other indicators such as vacancy rates or local economic trends to gauge demand.
In summary, if your debt service is covered by the FMR and you're willing to accept slightly lower market rents or have a strategy to handle higher debt service, ZIP 29047 could be a viable Section 8 investment. However, the strength of demand remains uncertain without DOM data, so further research into local rental market dynamics is recommended.
Data Sources: FMR data from HUD (2027). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.