Location: Cherokee County, SC | Metro: Cherokee County, SC
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 | $780 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $890 |
| 3 Bedrooms | $1,110 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $890 | $132,090 | 0.67% | D |
| 3BR | $1,110 | $200,990 | 0.55% | F |
| 4BR | $1,380 | $258,409 | 0.53% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 29340, located in Gaffney, South Carolina, hinges on an analysis of both yield potential and market stability. On the yield axis, the metro Fair Market Rent (FMR) for 2026 stands at $900, while the market rent is higher at $1,065. The median home value in the area is $157,083. This indicates that the rental market has a slight premium over the FMR, suggesting a modest yield opportunity for landlords who can effectively manage their properties at or near market rates.
Turning to stability, the ZIP code reveals a 24.2% rental rate, which means a significant portion of residents are tenants. However, the lack of data on the average days on market (DOM) for rentals suggests some uncertainty about how quickly properties might be leased. The median household income in the area is $44,123, which is relatively low compared to national averages and could indicate a less stable tenant base due to potentially lower financial resilience among renters.
Based on these figures, ZIP 29340 does not fully align with characteristics of a high-yield/low-stability flip-style market. While the rental market offers a yield advantage over the FMR, it is not substantial enough to categorize the area as high-yield. Additionally, the low median income may pose challenges for maintaining consistent cash flow and could lead to higher vacancy rates or increased turnover if tenants struggle to meet rent payments.
Nor does this ZIP code fit neatly into the steady-cashflow category. The relatively low income levels and the absence of data on DOM suggest a level of instability that could disrupt regular rental income. Furthermore, the yield advantage, though present, is not so pronounced that it would compensate for the potential risks associated with a less financially secure tenant population.
In summary, ZIP 29340 presents a scenario that lies between a high-yield/low-stability market and a steady-cashflow zone. Landlords should prepare for moderate yields with a focus on managing costs and ensuring property maintenance to attract and retain tenants. Small-portfolio investors must weigh the slightly above-average rental rates against the potential challenges posed by the local economic conditions.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.