Location: Kershaw County, SC | Metro: Columbia, 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 | $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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,470 | $454,679 | 0.32% | F |
| 4BR | $1,720 | $578,095 | 0.3% | F |
U.S. Census Bureau data (2024)
The thesis for Section 8 real estate in ZIP 29130 revolves around the $102 difference between the Fair Market Rent (FMR) of $1020 and the actual market rent of $918, as reported by the Census Bureau's American Community Survey (ACS). This represents a 10.6% premium set by the FMR over the current market conditions.
This gap makes properties in ZIP 29130 a yield play for landlords and small-portfolio investors. With only 17.6% of residents being renters and a median home value of $300,997, the rental market is relatively tight. However, the median income of $63,963 suggests that many residents might struggle to afford higher rents, making them ideal candidates for housing vouchers.
The $1020 FMR can provide a stable, guaranteed income through Section 8 vouchers, which is higher than the current market rate. This allows investors to capture a yield that exceeds the open-market rental rates while still offering affordable housing options. It's important to note that the FMR is a benchmark used by the government to determine the maximum amount it will pay for a rental unit, and it typically covers 90-110% of the actual FMR in a given area. Therefore, landlords in ZIP 29130 can expect to receive close to the FMR figure, if not slightly more, when renting to voucher holders.
In conclusion, the FMR in ZIP 29130 offers a compelling opportunity for investors to achieve a better yield than the open-market rental rates, without setting rents artificially high for low-income residents. This scenario presents a win-win situation for both investors and voucher tenants.
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.