Location: Spartanburg, SC | Metro: Spartanburg, 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 | $1,010 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,150 | $139,116 | 0.83% | C |
| 3BR | $1,400 | $212,442 | 0.66% | D |
| 4BR | $1,660 | $278,229 | 0.6% | F |
U.S. Census Bureau data (2024)
The analysis for landlords and small-portfolio investors in ZIP code 29303, located in Spartanburg, SC, centers around the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1050, while the market rent, measured by ZORI, stands at $1435. This represents a gap of $385, or approximately 36.7%, indicating that the market rent significantly exceeds the FMR.
In Spartanburg, where 52.7% of residents are renters, and the median home value is $211,854 with a median income of $48,295, the cost of housing voucher tenants below open-market rates can be a concern. Voucher tenants, who benefit from government subsidies, pay only a portion of their income towards rent, which is typically 30%. Therefore, they might pay around $14,488.50 annually, or roughly $1207.38 per month, which is still above the FMR but below the market rent.
The implication of this scenario is that landlords could face a shortfall if they rely solely on FMR rates. To illustrate, if a landlord charges the FMR rate of $1050, they would receive $12,600 annually, which is $1888.50 less than what they could potentially earn from a voucher tenant paying $1207.38 monthly. This shortfall highlights the financial risk involved when accepting voucher tenants at FMR rates in a market where rents are higher.
Given the economic context of Spartanburg, where median incomes are relatively low, landlords must carefully consider the trade-offs. While accepting voucher tenants ensures a steady stream of rental income, it comes at the cost of lower yields compared to renting at market rates. Investors should also be aware of the administrative burden associated with housing voucher tenants, including the need to comply with HUD regulations and potential delays in receiving rent payments.
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.