Section 8 Fair Market Rent (FMR) for ZIP 29073 - 2027

Investment Score for ZIP 29073

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

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

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,150	$171,372	0.67%	D
3BR	$1,470	$241,510	0.61%	D
4BR	$1,720	$295,906	0.58%	F
5BR	$1,995	$359,906	0.55%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 29073 (Lexington, SC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 29073 is set by HUD for 2026. For a two-bedroom unit, the FMR is $1170, which represents 18.2% of the median household income in Lexington County. However, actual rental prices can vary significantly from these figures. The Zillow median price for a two-bedroom home in this area is $168,835, which translates to a monthly mortgage payment of approximately $787 if financed over 30 years at a 4.5% interest rate. This means that landlords who purchase properties at the Zillow median price would still need to charge a significant premium over the mortgage payment to meet the FMR. Given the FMR constraints, voucher holders are limited to units that do not exceed these rent levels. For instance, a three-bedroom unit cannot cost more than $1500 per month under the voucher program. This creates a challenge for landlords who might want to rent out larger units at higher rates, as they may struggle to find tenants willing to pay the full market rate while also being eligible for the voucher program. #### Affordability & Renter Profile In ZIP code 29073, the population is 53,156, and 18.3% of residents are renters. The occupancy rate is high at 94.9%, indicating a relatively tight rental market. With a median household income of $77,229, the majority of residents can afford to own homes, but a significant portion still relies on renting. The affordability of housing for renters is a critical issue. The FMR for a two-bedroom unit is only 18.2% of the median income, suggesting that many residents can afford to live in the area without assistance. However, the actual rent prices are likely higher due to the tight market conditions. The high occupancy rate implies that there is little vacancy, which could drive up rent prices beyond the FMR levels, making it difficult for voucher holders to find suitable housing. #### Investor Angle From an investor perspective, the ZIP code 29073 offers some potential but comes with challenges. The Fair Market Rent for a two-bedroom unit is $1170, while the Zillow median price suggests a monthly mortgage payment of around $787. This leaves a margin of $383 per month before factoring in other costs such as property taxes, insurance, maintenance, and utilities. These additional expenses can quickly eat into the profit margin, especially if the property needs significant repairs or updates. To determine the investment grade, we must consider the overall financial health of the property. If the total monthly expenses (including mortgage, taxes, insurance, and maintenance) exceed the FMR, then the investment would be negative in terms of cash flow. Given the high occupancy rate, there is a good chance of finding tenants, but the tight market may mean that landlords have to accept lower-than-market rents to attract voucher holders. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high occupancy rate and the tight market, investors should focus on smaller units like one-bedroom and two-bedroom apartments. These units are more likely to be rented at or near the FMR levels, ensuring a steady stream of income. For example, a one-bedroom unit with an FMR of $1060 would provide a better cash flow opportunity compared to a four-bedroom unit with an FMR of $1800. 2. **Consider Location-Specific Pricing**: While the overall market is tight, certain neighborhoods within ZIP code 29073 may offer more affordable rental options. Investors should conduct thorough neighborhood analyses to identify areas where rent prices are closer to the FMR. This could involve looking at older, less desirable properties that are priced lower than the Zillow median. 3. **Evaluate Property Condition**: Properties in need of significant repairs or updates will have higher initial costs, reducing the potential cash flow. Investors should prioritize properties that require minimal updates to maximize their returns. A well-maintained property with an FMR of $1170 for a two-bedroom unit could yield a positive cash flow if the total monthly expenses are kept below this amount. #### Bottom Line For Section 8-focused investors, ZIP code 29073 presents a mixed picture. While the high occupancy rate and median income suggest a strong demand for rental properties, the tight market and high actual rent prices make it challenging to achieve positive cash flow solely based on the FMR. Therefore, the recommendation is to **Hold** or **Skip** this ZIP code unless investors can find properties that are significantly below the Zillow median price or in areas with lower rent premiums. If investors decide to enter this market, they should focus on smaller units and ensure that the total monthly expenses are manageable to avoid negative cash flow scenarios. Additionally, conducting detailed neighborhood analyses to identify pockets of lower rent prices could help in securing a more favorable investment position.

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.