Location: Lee County, SC | Metro: Sumter, SC MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,200 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
U.S. Census Bureau data (2024)
A landlord considering whether to buy in ZIP code 29104 for Section 8 purposes should follow this decision tree:
1) Does the Fair Market Rent (FMR) of $910 cover the debt service on a property valued at $106,319?
No. The FMR of $910 does not sufficiently cover the debt service on a property priced at $106,319. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. For a property of this value, these expenses would likely exceed $910 per month, making it financially unviable to rely solely on Section 8 tenants for income.
It depends. This scenario applies if you can secure a property for less than $106,319 or if the local tax rates, insurance premiums, and maintenance costs are lower than average, allowing the $910 FMR to potentially meet debt service requirements. However, such scenarios are exceptions rather than the norm.
Yes. If the property's total debt service is less than $910, then it could be viable. But given the typical costs associated with owning a property valued at $106,319, this is unlikely without significant subsidies or other financial arrangements.
2) Is the market rent of $919 above, at, or below the FMR?
Above. The market rent of $919 exceeds the FMR of $910, indicating that landlords might find it more profitable to seek non-Section 8 tenants who can pay closer to market rates. This suggests that relying solely on Section 8 rents may not maximize profit potential.
At. If the market rent were exactly $910, this would mean that Section 8 rents match the market rate, making it a neutral decision point. However, since the market rent is $919, this option does not apply.
Below. This does not apply as the market rent is higher than the FMR. If it were below, it would indicate that Section 8 rents are competitive with the market, but that's not the case here.
3) Are 34.0% renters plus an unspecified number of days in Days on Market (DOM) enough demand?
No. While 34.0% of the population are renters, which is a decent percentage, the lack of data on DOM indicates uncertainty about how quickly properties can be leased. In markets where DOM is high, even a reasonable rental percentage may not translate into sufficient demand.
It depends. If the Days on Market for rental properties in this ZIP code is relatively low, then the 34.0% of renters could represent a strong enough demand to justify investment. Conversely, if DOM is high, the same percentage of renters might indicate a weak market for rentals.
Yes. This would apply if the Days on Market were low, suggesting strong demand among the 34.0% of renters. However, without specific DOM data, this conclusion cannot be definitively made.
In summary, the primary gating factor is whether the FMR can clear debt service. Given the property valuation and typical costs, it is unlikely that FMR alone will suffice. Additionally, the market rent being above the FMR further complicates the decision to invest solely for Section 8 tenants. Lastly, the rental percentage is adequate, but the missing Days on Market data introduces uncertainty about the speed of leasing properties.
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.