Location: Spartanburg, SC | Metro: Spartanburg, SC HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,020 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 29329 provides insight into potential investment yields based on Fair Market Rent (FMR) and market rent figures. For a two-bedroom property, the annualized FMR for fiscal year 2024 is set at $1150 per month. This translates to an annual rental income of $13,800. The market rent, according to the Census ACS, stands at $1,077 per month, resulting in an annual rental income of $12,924.
To derive the gross yield, we would typically compare these annual incomes to the median home value. However, for ZIP code 29329, the median home value is not available (N/A). Without this data point, we cannot calculate a precise gross yield percentage. But we can still provide a qualitative assessment based on the other available metrics.
The renter density in ZIP 29329 is 65.4%, indicating a significant portion of residents are likely to be interested in affordable housing options such as those offered under the Section 8 program. Given this high density of renters, properties that qualify for Section 8 are likely to have a steady demand, which supports the higher FMR scenario.
Additionally, the lack of data on days on market (DOM) suggests that either there is limited turnover in the rental market, or the data is insufficient to draw conclusions. In either case, it points to a potentially stable rental environment, where vacancy rates might be lower compared to areas with higher DOM.
In conclusion, while the exact gross yield cannot be calculated due to the missing median home value, the higher annual income derived from the FMR ($13,800) versus the market rent ($12,924) implies a better gross yield for Section 8 properties. This scenario is more realistic considering the high renter density and the likely stability of the rental market in this area. Landlords and small-portfolio investors should focus on the advantages of consistent tenant occupancy and government-backed rental payments when evaluating investments in ZIP code 29329.
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.