Location: Columbia, SC | Metro: Augusta-Richmond County, GA-SC HUD Metro FMR Area
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 | $770 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,260 | $299,338 | 0.42% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 29129 reveals interesting insights into potential investment opportunities. The Fair Market Rent (FMR) for a 2-bedroom unit in this area for FY 2024 is set at $1020 per month. When annualized, this translates to an income of $12,240 per year. Given the median home value of $154,887, the implied gross yield based on the FMR would be approximately 8%. This calculation is derived by dividing the annualized rental income by the median home value.
In contrast, the market rent for a similar property is recorded at $775 per month according to the Census ACS data. Annualizing this figure gives an annual rental income of $9,300. Using the same median home value, the gross yield based on market rent is roughly 6%. This is calculated by the same method as above, reflecting a lower return compared to the FMR scenario.
The 14.5% renter density suggests that while a significant portion of the population does rent, it's not overwhelmingly high. This could imply that there is a mix of homeowners and renters in the area, potentially affecting the demand for rental properties. However, the lack of data on the number of days on market (DOM) makes it challenging to assess how quickly rental units are typically filled in this ZIP code. Without this information, we cannot determine if the FMR or market rent scenario is more likely to be realized in terms of occupancy rates.
Given the two gross yields, the FMR-based yield of 8% appears more favorable for investors looking to capitalize on Section 8 housing. However, it's important to note that actual net operating income (NOI) will depend on various factors including maintenance costs, vacancy rates, and management fees. Investors should conduct thorough due diligence and consider these factors when making investment decisions.
The higher gross yield based on FMR indicates a potentially better financial outcome for landlords who qualify for Section 8 tenancy. However, the reality of achieving this yield depends on the landlord's ability to secure Section 8 tenants and maintain compliance with the program requirements. In summary, while the FMR scenario presents a more attractive gross yield, the market rent scenario reflects a more conservative estimate of potential returns.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.