Location: Orangeburg County, SC | Metro: Orangeburg County, SC
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $650 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $890 |
| 3 Bedrooms | $1,060 |
| 4 Bedrooms | $1,170 |
| 5 Bedrooms | $1,357 |
| 6 Bedrooms | $1,520 |
| 7 Bedrooms | $1,642 |
| 8 Bedrooms | $1,724 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,060 | $226,344 | 0.47% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 29048 reveals some key insights into potential investment yields. For the purposes of this analysis, we will focus on the two-bedroom Fair Market Rent (FMR) and market rent figures to derive the gross yield.
Based on the provided data, the annualized Fair Market Rent for a two-bedroom property in ZIP 29048 for fiscal year 2026 is set at $900 per month. This translates to an annual income of $10,800. The median home value in the area is $198,016. To calculate the gross yield using the FMR, divide the annual income by the median home value:
Gross Yield (FMR): $10,800 / $198,016 = 5.45%
On the other hand, the market rent for a two-bedroom property in ZIP 29048, based on Census ACS data, is $932 per month. This results in an annual income of $11,184. Using the same median home value, the gross yield calculation for market rent is as follows:
Gross Yield (Market Rent): $11,184 / $198,016 = 5.65%
Comparing these two yields, it's evident that the gross yield under market rent conditions is slightly higher than under Section 8 FMR conditions. However, the choice between the two depends largely on the specifics of the rental market and the tenant base in ZIP 29048.
Given the 18.2% renter density, it's important to consider the likelihood of finding tenants willing to pay the higher market rent. The N/A-day DOM (days on market) suggests that there is limited data on how quickly properties are rented out, which could indicate either a stable market or a lack of recent transactions.
In reality, the Section 8 program often provides a steady stream of tenants due to the guaranteed payment structure, which can be particularly appealing in areas with lower renter density. Therefore, while the gross yield under market rent conditions is marginally better, the predictability and stability offered by Section 8 might outweigh the slight increase in gross yield for many investors.
To conclude, the gross yield for Section 8 properties in ZIP 29048 is approximately 5.45%, whereas the gross yield for market rent properties is about 5.65%. Investors should weigh the benefits of guaranteed payments against the potential for higher rental income when deciding which path to take.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.