Location: Spartanburg, SC | Metro: Spartanburg, SC HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,400 |
| 1 Bedroom | $1,460 |
| 2 Bedrooms | $1,590 |
| 3 Bedrooms | $1,940 |
| 4 Bedrooms | $2,290 |
| 5 Bedrooms | $2,656 |
| 6 Bedrooms | $2,975 |
| 7 Bedrooms | $3,213 |
| 8 Bedrooms | $3,374 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 29333 highlights a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $1120, while the Census American Community Survey (ACS) reports the market rent at $1430. This means there is a $310 difference, or a 27.6% gap, between what the government deems as fair market rent and the prevailing market rate.
Given that the FMR is lower than the market rent, landlords and small-portfolio investors must understand the implications of housing voucher tenants. Voucher tenants receive subsidies to cover part of their rent, but they pay less than the open-market rate. The cost of this arrangement is that landlords must accept a lower rental income than what the market would otherwise provide. In ZIP 29333, where 100.0% of residents are renters and the median home value is $150,103, the decision to participate in the Section 8 program should be carefully weighed against the potential loss in rental revenue.
The median income figure is not available, which complicates the analysis of affordability and tenant stability. However, with the high median home value and the fact that all residents are renters, it suggests a strong rental market. Landlords might consider the trade-offs between the guaranteed rent through vouchers and the possibility of achieving higher rents by targeting non-voucher tenants who can afford the market rate.
To summarize, the $310 or 27.6% gap between the FMR and market rent in ZIP 29333 presents a challenge for landlords. While the program ensures stable rental income, it comes at the expense of potentially higher yields that could be achieved by renting at market rates. The decision to engage with Section 8 tenants should be based on an understanding of the local rental dynamics and the landlord's investment goals.
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.