Location: Lee County, SC | Metro: Sumter, SC MSA
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 | $850 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,880 |
| 5 Bedrooms | $2,181 |
| 6 Bedrooms | $2,443 |
| 7 Bedrooms | $2,638 |
| 8 Bedrooms | $2,770 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,230 | $101,045 | 1.22% | A |
| 3BR | $1,460 | $203,449 | 0.72% | D |
| 4BR | $1,880 | $291,755 | 0.64% | D |
| 5BR | $2,181 | $327,827 | 0.67% | D |
U.S. Census Bureau data (2024)
A skeptical investor considering Section 8 properties in ZIP 29153 (Sumter, SC) might have several concerns that need addressing. Let's look at the key objections and use the available data to provide clarity.
Objection 1: Will FMR $1230 (zip FY 2024) cover the mortgage on a $215,727 home?
The Fair Market Rent (FMR) for ZIP 29153 in fiscal year 2024 is set at $1230. To determine if this will sufficiently cover the mortgage on a home priced at $215,727, we must consider typical mortgage rates and terms. Assuming a 30-year fixed-rate mortgage at an average rate of 5%, the monthly mortgage payment on a $215,727 home would be approximately $1160. This figure does not include property taxes, insurance, or maintenance costs, which can add significantly to the total monthly expenses. However, the $1230 FMR exceeds the base mortgage payment, indicating that it should cover the mortgage while leaving room for other expenses.
Objection 2: Is there enough renter demand at 18.3%?
The rental vacancy rate for ZIP 29153 stands at 18.3%. While this percentage is higher than some desirable markets, it still indicates a significant portion of renters seeking housing. A vacancy rate of 18.3% suggests that there is ample opportunity for landlords to find tenants, even though competition among rental properties may be somewhat fierce. The data does not provide a direct comparison to historical vacancy rates or national averages, so it's important to research further to understand how this rate has changed over time and how it compares to similar areas.
Objection 3: Will vouchers keep pace with $910 market rents?
The voucher amount is designed to help low-income families afford housing that meets the Fair Market Rent standards. In ZIP 29153, the average market rent is $910. Given that the FMR is $1230, landlords participating in the Section 8 program can expect to receive a payment close to the FMR. The Housing Choice Voucher Program adjusts its payments annually based on changes in the FMR, ensuring that voucher holders can access housing that is reasonably priced. Therefore, it is reasonable to conclude that vouchers will likely keep pace with the $910 market rents, providing a stable income source for landlords.
In conclusion, while the data provides a snapshot of the financial landscape in ZIP 29153, it is crucial for investors to conduct thorough due diligence. Understanding local trends, comparing current figures with historical data, and being aware of potential changes in government programs can help mitigate risks and maximize returns.
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.