Section 8 Fair Market Rent (FMR) for ZIP 29223 - 2027

Investment Score for ZIP 29223

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,070
1 Bedroom	$1,210
2 Bedrooms	$1,320
3 Bedrooms	$1,660
4 Bedrooms	$1,890
5 Bedrooms	$2,192
6 Bedrooms	$2,455
7 Bedrooms	$2,651
8 Bedrooms	$2,784

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,320	$140,120	0.94%	C
3BR	$1,660	$205,572	0.81%	C
4BR	$1,890	$303,391	0.62%	D
5BR	$2,192	$481,393	0.46%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 29223 (Columbia, SC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 29223 is set by HUD for 2026, with specific rates for different bedroom sizes. For a two-bedroom apartment, the FMR is $1390. However, the actual median rent for a two-bedroom unit on Zillow is $141,564, which translates to a monthly rental cost of approximately $1179.60 when considering a typical mortgage payment scenario. This means that the actual rent is slightly below the FMR, but the price-to-FMR ratio is quite high at 8.5x, indicating that property values are significantly higher than what renters might be paying in rent. HUD’s voucher program allows tenants to pay 30% of their adjusted income towards rent, with the remaining amount subsidized by the government. Given that the median household income in 29223 is $62,408, a voucher holder would need to pay around $1872 per year, or roughly $156 per month, towards a two-bedroom unit. The remaining $1234 would be covered by the voucher. Therefore, voucher holders can afford units up to the FMR, but the high price-to-FMR ratio suggests that many properties may be priced beyond the reach of typical voucher recipients. #### Affordability & Renter Profile ZIP code 29223 has a significant renter population, with 42.4% of households renting. The occupancy rate is also high at 93.5%, indicating a strong demand for rental housing. Given the median household income of $62,408, affordability is a concern for many residents, especially those relying on Section 8 vouchers. With 26.7% of the median income required for a two-bedroom apartment, it is clear that renters are under financial pressure. The median rent of $1179.60 is close to the FMR of $1390, suggesting that the market is relatively tight. There is little room for significant rent increases without risking a decline in occupancy rates, given the already high cost relative to incomes. #### Investor Angle From an investor perspective, the ZIP code 29223 presents a mixed picture. While the actual median rent is slightly below the FMR, the high price-to-FMR ratio indicates that purchasing properties at market value would likely result in negative cash flow if the investor relies solely on FMR-based rents. To determine if the ZIP code is cash-flow positive, we must consider the potential rental income versus the costs of ownership. Assuming a purchase price of $141,564 for a two-bedroom unit, and a typical mortgage rate of 4.5%, the monthly mortgage payment would be approximately $710. Adding in other costs such as property taxes, insurance, and maintenance, the total monthly expenses could easily exceed $1000. At an FMR of $1390, the net cash flow would be around $380 per month, which is positive but thin given the high purchase price. The investment grade for this ZIP code would be moderate. While there is a strong demand for rental housing, the high property values and tight margins suggest that investors should proceed with caution. It is important to find properties that are either undervalued or have the potential for value appreciation to ensure long-term profitability. #### Specific Actionable Insights 1. **Focus on Undervalued Properties:** Investors should look for properties that are priced below the median of $141,564. A two-bedroom unit purchased for $120,000 would have a lower monthly mortgage payment of around $630, leading to a better cash flow position even at FMR rates. 2. **Consider Multi-Family Units:** With a higher FMR for larger units (e.g., $1770 for three-bedroom apartments), multi-family units may offer better returns. Investors should explore opportunities in three- or four-bedroom units where the FMR is higher and the potential for cash flow is greater. 3. **Engage with Local Real Estate Agents:** To navigate the tight market effectively, investors should work closely with local real estate agents who can provide insights into undervalued properties and areas with less competition. This will help in securing properties at more favorable prices. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 29223 is to **Hold**. The market is tight, with high property values and a strong demand for rental housing. However, the high price-to-FMR ratio makes it challenging to achieve positive cash flow at market rates. Investors should focus on finding undervalued properties and consider multi-family units to maximize returns. Engaging with local real estate professionals will be key to identifying opportunities that align with the FMR and offer a reasonable profit margin.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.