Location: Cherokee County, 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 | $1,050 |
| 1 Bedroom | $1,090 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,710 |
| 5 Bedrooms | $1,984 |
| 6 Bedrooms | $2,222 |
| 7 Bedrooms | $2,400 |
| 8 Bedrooms | $2,520 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,190 | $125,977 | 0.94% | C |
| 3BR | $1,450 | $191,170 | 0.76% | D |
| 4BR | $1,710 | $290,435 | 0.59% | F |
| 5BR | $1,984 | $376,962 | 0.53% | F |
U.S. Census Bureau data (2024)
The real estate market in Spartanburg, SC (ZIP 29306) presents a nuanced picture for both landlords and small-portfolio investors. The median home value stands at $196,766, indicating a relatively stable housing market where price reductions have been minimal, with only 0.3% of listings being reduced. This low percentage of price reductions suggests strong seller's market conditions, where homes are likely to sell close to their asking price, implying that landlords can maintain or slightly increase rental rates without significant pushback from tenants.
The N/A-day median Days on Market (DOM) figure is indicative of a highly active market where homes are selling quickly. While the exact number is not available, the implication is that homes are moving swiftly once listed, which supports the notion of robust demand for properties in Spartanburg. This quick turnover can be beneficial for investors looking to either buy or sell properties in the area, as it signals a healthy level of buyer interest.
On the rental side, the Fair Market Rent (FMR) for ZIP 29306 as of fiscal year 2024 is set at $1110, while the actual market rent, as measured by Zillow's Observed Rent Index (ZORI), is higher at $1,260. This gap between the FMR and the market rent indicates that landlords can continue to charge above the government-subsidized rates, particularly for Section 8 eligible tenants. However, the increasing disparity also suggests potential challenges in maintaining occupancy rates if the cost of living rises further, pushing more renters into the subsidized bracket.
For long-term hold investors, the appreciation thesis in Spartanburg is mixed. With a median home value that has remained relatively steady, the potential for rapid appreciation is limited. Instead, the focus should be on the consistent rental income and the possibility of gradual appreciation over time, driven by factors such as population growth and economic stability. The current market dynamics suggest that investors should expect modest gains rather than explosive growth, making Spartanburg a solid choice for those seeking stable, long-term investments.
Investors should monitor local economic indicators and trends closely, as they will influence both home values and rental rates. Continued engagement with the local market, understanding tenant needs, and maintaining properties to meet rising standards will be key to maximizing returns in Spartanburg over the next 12-24 months.
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.