Location: Newberry County, SC | Metro: Laurens County, SC HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 29178, located in Newberry County, SC, reveals key insights for potential landlords and small-portfolio investors. First, examining the rent math, the Federal Market Rent (FMR) set at $970 for the fiscal year 2024 contrasts significantly with the current market rent of $723 based on Census ACS data. This indicates that landlords might struggle to attract tenants under the Section 8 program due to the higher FMR compared to what the local market can support.
Second, regarding property acquisition, the median home value in ZIP 29178 stands at $77,630, which appears relatively affordable for investors looking to enter the market. However, the lack of data on days on market (DOM) and the percentage of homes needing price cuts suggests that while entry-level costs may be low, the market dynamics could present challenges in securing quick sales or maintaining asking prices.
Third, the tenant demand in ZIP 29178 is moderate. With a total population of 3,280 and a 13.9% renter share, there are approximately 457 potential renters. This number is not substantial enough to ensure high occupancy rates, especially considering the disparity between FMR and market rents.
In conclusion, ZIP 29178 presents a mixed scenario for Section 8 landlords and small-portfolio investors. While the acquisition cost is low at $77,630, the mismatch between the FMR ($970) and the actual market rent ($723) poses a significant challenge. Additionally, the limited tenant demand, with only about 457 potential renters, further complicates the investment case. Investors should proceed with caution, focusing on properties that can be rented at market rates and ensuring they understand the local rental market's intricacies.
Data Sources: FMR data from HUD (2027). 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.