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 | $1,040 |
| 1 Bedroom | $1,190 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,630 |
| 4 Bedrooms | $1,850 |
| 5 Bedrooms | $2,146 |
| 6 Bedrooms | $2,404 |
| 7 Bedrooms | $2,596 |
| 8 Bedrooms | $2,726 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,190 | $54,894 | 2.17% | A+ |
| 2BR | $1,290 | $112,389 | 1.15% | B |
| 3BR | $1,630 | $201,039 | 0.81% | C |
| 4BR | $1,850 | $276,840 | 0.67% | D |
| 5BR | $2,146 | $325,505 | 0.66% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 29210 in Columbia, SC, reveals some interesting insights into potential investment opportunities. To start, let's consider the annualized Fair Market Rent (FMR) for a two-bedroom unit, which stands at $1290 per month for fiscal year 2024. This translates to an annual rental income of $15,480. When we compare this to the median home value of $199,220, the implied gross yield for a Section 8 property in this area is approximately 7.77%. The calculation is straightforward: $15,480 divided by $199,220.
On the other hand, the market rent for a similar property, as indicated by the Zillow Observed Rental Index (ZORI), is $1,267 per month. This amounts to an annual rental income of $15,204. Given the same median home value, the gross yield for a market-rent property is slightly lower at 7.63%. The calculation here is $15,204 divided by $199,220.
Given the 63.7% renter density in ZIP 29210, it is clear that there is a strong demand for rental properties. Additionally, the Days on Market (DOM) figure of 19 days suggests that properties are quickly rented out, indicating a robust rental market. However, the difference between the Section 8 FMR and the market rent is minimal, at just $23 per month. This narrow gap makes the Section 8 scenario almost as attractive as the market-rent scenario, considering the stability of government-backed rental payments.
In conclusion, the gross yields for both scenarios are very close, with the Section 8 scenario offering a slightly higher yield of 7.77% compared to the market-rent scenario's 7.63%. Given the high renter density and quick turnover rates, investing in a Section 8 property in ZIP 29210 can be seen as a practical choice for landlords and small-portfolio investors seeking stable returns without the volatility often associated with market rents. The decision should ultimately be based on individual risk tolerance and investment goals, but the data suggests that either option provides a reasonable gross yield in this particular market.
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.