Location: Spartanburg, SC | Metro: Spartanburg, SC HUD Metro FMR Area
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 | $1,230 |
| 1 Bedroom | $1,280 |
| 2 Bedrooms | $1,390 |
| 3 Bedrooms | $1,690 |
| 4 Bedrooms | $2,000 |
| 5 Bedrooms | $2,320 |
| 6 Bedrooms | $2,598 |
| 7 Bedrooms | $2,806 |
| 8 Bedrooms | $2,946 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,390 | $206,320 | 0.67% | D |
| 3BR | $1,690 | $296,693 | 0.57% | F |
| 4BR | $2,000 | $335,655 | 0.6% | F |
| 5BR | $2,320 | $373,311 | 0.62% | D |
U.S. Census Bureau data (2024)
The classification of ZIP 29365, located in Lyman, SC, hinges on the interplay between its rental market dynamics and the broader economic stability indicators. With a Fair Market Rent (FMR) of $1,400 for the fiscal year 2024, the area offers a slightly lower rental yield compared to the market rate of $1,472. This suggests that while there is potential for rental income, it may not be at the premium levels seen in some other areas.
The median home value of $305,050 provides context for the investment cost in the area. However, the key figure to consider is the percentage of renters, which stands at 13.1%. This relatively low percentage indicates that the majority of residents prefer homeownership over renting, which can affect the demand for rental properties and thus the overall yield.
In terms of stability, the median household income of $76,966 is a positive indicator, suggesting that tenants in the area have a reasonable capacity to pay rent. The lack of data on the average days on market (DOM) for rentals makes it difficult to assess how quickly properties can be leased, but generally, a higher income level supports a more stable rental market.
Based on these figures, ZIP 29365 leans towards being a steady-cashflow zone. The rental yield is moderate, with the FMR being slightly below the market rate, but the presence of a solid median income base ensures that tenants can reliably afford their rent. This combination suggests a market where landlords and small-portfolio investors can expect consistent cash flows without the volatility associated with high-yield, low-stability markets.
To further substantiate this classification, it's important to note that the low percentage of renters (13.1%) does not support a high-yield/low-stability 'flip-style' market, where quick turnover and higher rents might be expected. Instead, the data points toward a scenario where rental properties are likely to be occupied for longer periods, contributing to a more predictable and stable income stream.
Investors looking to enter ZIP 29365 should focus on properties that can attract long-term tenants and benefit from the area's moderate rental rates and stable income environment. While the upside may not be as dramatic as in more volatile markets, the consistency and reliability of cash flow make it an attractive option for those seeking a balanced approach to real estate investment.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.