Location: Clarendon County, SC | Metro: Clarendon 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 | $640 |
| 1 Bedroom | $680 |
| 2 Bedrooms | $890 |
| 3 Bedrooms | $1,100 |
| 4 Bedrooms | $1,310 |
| 5 Bedrooms | $1,520 |
| 6 Bedrooms | $1,702 |
| 7 Bedrooms | $1,838 |
| 8 Bedrooms | $1,930 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,100 | $332,691 | 0.33% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap rate for ZIP code 29148 reveals a complex but manageable picture for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a two-bedroom apartment in this area, as set by HUD for FY 2024, is $910 per month. Using this figure, the annualized rental income would be $10,920. The Census Bureau's American Community Survey (ACS) indicates that the market rent for a similar property is $788 per month, leading to an annualized rental income of $9,456.
To calculate the gross yield, we use the median home value of $199,309. For the FMR scenario, the gross yield is calculated as follows: $10,920 / $199,309 = 5.48%. In the case of market rent, the gross yield drops to $9,456 / $199,309 = 4.74%. This means that under the Section 8 program, landlords can expect a higher gross yield compared to the prevailing market rates.
Given the renter density of 24.8%, it is important to consider the demand for rental properties, including those participating in the Section 8 program. While this percentage suggests a moderate level of renters in the area, it does not provide a complete picture of the tenant pool. The average number of days on market (DOM) being N/A implies that there might be limited data on how quickly rental units are filled, which could affect the decision-making process for landlords considering participation in Section 8.
The higher gross yield of 5.48% under the Section 8 program is more favorable for landlords seeking stable, government-backed rental income. However, the reality of securing tenants at this rate must also factor in the administrative overhead and potential delays in the payment process associated with the Section 8 program. Considering the market rent gross yield of 4.74%, the Section 8 option provides a tangible increase in potential returns, though it comes with additional considerations regarding tenant selection and management.
In summary, for ZIP code 29148, the Section 8 program offers a gross yield of 5.48% compared to the market rate yield of 4.74%. Landlords should weigh these figures against the specifics of their property management practices and the local rental market dynamics to determine the most suitable approach.
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.