Location: Sumter, 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 | $930 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,330 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $2,050 |
| 5 Bedrooms | $2,378 |
| 6 Bedrooms | $2,663 |
| 7 Bedrooms | $2,876 |
| 8 Bedrooms | $3,020 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,580 | $180,900 | 0.87% | C |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 29168 is based on the significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $1,170, while the Census American Community Survey (ACS) reports the market rent at $1,022. This indicates that the FMR is higher than the market rent by $148, or approximately 14.5%. The higher FMR means that landlords who accept Section 8 vouchers can receive a rental payment that exceeds the current market rate, making it an attractive yield play.
The gap between FMR and market rent benefits voucher tenants and landlords alike. Voucher holders can secure housing at rates that are above the open-market average but still affordable due to government subsidies. Landlords, in turn, can potentially earn more per unit than they would renting out properties without the assistance of vouchers, thus increasing their rental yield.
To anchor this analysis, consider the broader context of ZIP 29168. Renters constitute 29.1% of the population, indicating a substantial demand for rental properties. The median home value is $182,303, which suggests that homeownership is relatively expensive compared to renting. Additionally, the median income is $43,911, underscoring the financial challenges many residents face in affording housing.
In this environment, the availability of Section 8 vouchers is crucial. It allows low-income individuals and families to access housing that otherwise might be out of reach. For landlords, accepting these vouchers can provide a steady, reliable source of income that is pegged to a higher benchmark than the current market conditions.
However, there are considerations beyond just the financials. Accepting Section 8 tenants comes with regulatory compliance and potential maintenance costs, as voucher recipients may prefer lower-cost units. Despite these factors, the financial advantage of receiving higher rents through the voucher program makes it a compelling option for landlords looking to maximize their investment returns in ZIP 29168.
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.