Location: Columbia, 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 |
|---|---|---|---|---|
| 2BR | $1,150 | $177,108 | 0.65% | D |
| 3BR | $1,470 | $237,459 | 0.62% | D |
| 4BR | $1,720 | $302,799 | 0.57% | F |
| 5BR | $1,995 | $361,250 | 0.55% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 29170, located in Springdale, SC, is centered around the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $1,140, while the market rent, as measured by ZORI, is $1,446. This creates a significant gap of $306 per month, representing a 26.8% difference between the two figures.
Given that the FMR is lower than the market rent, landlords and small-portfolio investors should be aware of the financial implications of accepting housing voucher tenants. The cost of renting to voucher tenants at rates below the open-market price can affect overall portfolio yields. In Springdale, where 16.0% of residents are renters, landlords must consider how the reduced rental income from voucher tenants compares to the potential stability these tenants provide.
The median home value in Springdale is $245,169, indicating a relatively stable housing market. However, the median income of $74,902 suggests that many residents may struggle to afford market rents, making the availability of Section 8 vouchers particularly relevant. While accepting a tenant with a voucher guarantees a steady stream of income, it also means foregoing the higher rents that could be commanded in an open market.
To put this into perspective, if a landlord has a property that could command a market rent of $1,446 but opts to accept a Section 8 tenant paying $1,140, they are effectively leaving $306 on the table each month. Over a year, this amounts to a loss of $3,672 in potential rental income. This discrepancy can impact the overall profitability of a rental property, especially when considering the broader economic context of Springdale, including the percentage of renters and the median income levels.
In summary, the gap between the FMR and market rent in ZIP 29170 presents a trade-off for landlords. Accepting housing voucher tenants ensures a reliable source of income but comes at the cost of reduced rental revenue compared to market rates. Investors should carefully weigh these factors when deciding whether to participate in the Section 8 program.
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.