Section 8 Fair Market Rent (FMR) for ZIP 29214 - 2027

FY 2027 Fair Market Rent Rates

The analysis for ZIP code 29214 in Unknown, South Carolina, reveals some limitations due to incomplete data, particularly regarding median home values and current market rents. However, we can still derive a rough picture of the potential Section 8 cap rate scenario using the available Fair Market Rent (FMR) figures.

For a two-bedroom rental unit, the annualized FMR for fiscal year 2024 is set at $1240 per month. This figure is crucial for understanding the rental income potential under the Section 8 program. To calculate the implied gross yield, we would typically divide the annual rental income by the property's value. However, without a specific median home value for ZIP 29214, we must consider this calculation in a broader context.

If we hypothetically assume a median home value for the area, let's say it is $200,000, the annual rental income for a two-bedroom unit would be $14,880 ($1240 x 12 months). The implied gross yield under this scenario would be 7.44% ($14,880 / $200,000).

In contrast, the current market rent is listed as N/A, which suggests that there might not be enough data points to determine an accurate market rent for the area. This lack of information makes it challenging to compare the Section 8 gross yield to the potential gross yield from market-rate rentals. If market rents were known and higher than the Section 8 rates, the gross yield from market-rate rentals would likely exceed 7.44%, making them more attractive on a purely financial basis.

Given the N/A% renter density and N/A-day Days on Market (DOM), it's difficult to ascertain the exact proportion of renters versus homeowners and how quickly properties are being rented out. However, these factors typically influence the attractiveness of rental investments. A higher renter density generally means a larger pool of potential tenants, which could be favorable for landlords participating in the Section 8 program. Similarly, a lower DOM indicates quicker property turnover, which can be beneficial for cash flow.

In summary, while the exact gross yields cannot be determined due to missing data, the Section 8 cap rate scenario for ZIP 29214 implies a gross yield of around 7.44% based on our hypothetical median home value. This figure should be compared against actual market conditions once the missing data is obtained to make a concrete investment decision. The absence of specific market rent and median home value data underscores the need for thorough local research before investing in this area.

Data Sources: FMR data from HUD (2027).

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.