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 | $800 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $910 |
| 3 Bedrooms | $1,140 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $910 | $158,916 | 0.57% | F |
| 3BR | $1,140 | $272,845 | 0.42% | F |
| 4BR | $1,410 | $317,127 | 0.44% | F |
U.S. Census Bureau data (2024)
In ZIP code 29341, located in Gaffney, South Carolina, landlords and small-portfolio investors might question the viability of participating in the Section 8 program given certain financial realities. Let's address these concerns head-on.
Objection 1: Will Fair Market Rent (FMR) of $940 cover the mortgage on a $226,413 home?
The skepticism here is understandable. To secure a $226,413 home in Gaffney, assuming a 20% down payment, the principal loan amount would be around $181,130. With an average interest rate of 5%, the monthly mortgage payment could be approximately $985. At first glance, the FMR of $940 does not seem sufficient to cover the mortgage. However, it's important to consider that FMR is just one component of a landlord's income; they can also charge up to 40% of the difference between the FMR and their actual expenses, which includes the mortgage payment. This means that if a landlord's total expenses exceed the FMR, they have the flexibility to adjust the rent accordingly, ensuring the mortgage is covered.
Objection 2: Is there enough renter demand at 29.9%?
The percentage of renter-occupied housing units at 29.9% suggests a moderate level of demand. While this figure is lower than in some urban areas, it still represents a significant portion of the housing market. Moreover, the demand for affordable housing tends to remain steady even when overall rental rates fluctuate. The key metric to watch is the vacancy rate, which indicates how quickly properties are rented out. If the vacancy rate is low, it signals strong demand despite the lower percentage of renters. Unfortunately, the data provided does not include the vacancy rate, so we cannot definitively conclude the strength of demand based solely on the 29.9% figure.
Objection 3: Will vouchers keep pace with $1,052 market rents?
The FMR set by HUD is designed to reflect the average rent for a modest apartment in the area. In Gaffney, the FMR is $940, while the market rent stands at $1,052. The discrepancy of $112 per month highlights the challenge landlords face in relying solely on vouchers. However, the program allows landlords to collect the difference between the voucher amount and the market rent from the tenant. This means that landlords can still achieve the full market rent of $1,052, with the tenant contributing the additional $112. It's crucial to monitor the local economy and any changes in HUD policy that might affect future FMR adjustments.
While the data provides insights into the financial aspects of participating in the Section 8 program in Gaffney, it is essential to stay informed about local economic conditions and the specific needs of potential tenants to make a well-informed decision.
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.