Location: Spartanburg, SC | Metro: Spartanburg, SC HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,200 |
| 1 Bedroom | $1,250 |
| 2 Bedrooms | $1,360 |
| 3 Bedrooms | $1,660 |
| 4 Bedrooms | $1,960 |
| 5 Bedrooms | $2,274 |
| 6 Bedrooms | $2,547 |
| 7 Bedrooms | $2,751 |
| 8 Bedrooms | $2,889 |
U.S. Census Bureau data (2024)
A ZIP 29320 investment under the Section 8 program faces several challenges that can impact profitability. Firstly, the discrepancy between the market rent at $1,637 and the Fair Market Rent (FMR) at $1,220 for FY 2024 suggests a potential issue with tenant turnover. Landlords may struggle to find tenants willing to accept the lower FMR, leading to frequent changes in occupancy.
Vacancy exposure is another concern, as the days on market (DOM) data is currently N/A. This lack of information makes it difficult to predict how long a property might remain vacant, which can be costly due to lost rental income. Additionally, the typical home value of $132,501 combined with a median income of $54,353 increases the risk of deferred maintenance. Tenants with lower incomes may not prioritize upkeep, leaving landlords responsible for maintaining the property's condition without the financial buffer that higher-income areas might provide.
However, these risks must be weighed against the high renter share in ZIP 29320, which stands at 58.0%. A significant portion of the population renting indicates a strong demand for housing, which typically translates into higher demand for Section 8 vouchers. This can help mitigate some of the turnover and vacancy risks, as there will likely be a steady pool of qualified tenants seeking subsidized housing.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 29320 is moderate. While there are notable challenges such as tenant turnover and the need for regular maintenance, the high renter density provides a stable base of potential tenants, balancing out the overall risk profile.
Data Sources: FMR data from HUD (2027). 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.