Location: Spartanburg, SC | Metro: Laurens County, 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 | $940 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,070 | $155,412 | 0.69% | D |
| 3BR | $1,300 | $275,361 | 0.47% | F |
| 4BR | $1,500 | $327,617 | 0.46% | F |
| 5BR | $1,740 | $378,376 | 0.46% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 29388 (Woodruff, SC) provides a clear snapshot of potential rental income versus property values. Using the Fair Market Rent (FMR) for a 2-bedroom apartment at $910 per month (annualized to $10,920) and the Zillow Observed Rent Index (ZORI) at $1,414 per month (annualized to $16,968), we can calculate the implied gross yields against the median home value of $292,951.
In the scenario where the rental income is based on the FMR, the implied gross yield is approximately 3.73%. This is calculated by dividing the annualized FMR rent ($10,920) by the median home value ($292,951). Conversely, if the rental income aligns with the ZORI, the implied gross yield increases to about 5.80%, derived from the annualized ZORI rent ($16,968) divided by the median home value ($292,951).
Given the 23.7% renter density and an average Days on Market (DOM) of 38 days, the FMR-based gross yield of 3.73% is more reflective of the reality in Woodruff, SC. The lower renter density suggests that a significant portion of the population prefers homeownership, which could limit the pool of tenants willing to pay higher rents. Additionally, the relatively short DOM of 38 days indicates a competitive rental market, where properties are rented quickly, often at rates closer to the subsidized levels rather than market rates.
While the ZORI-based gross yield of 5.80% is appealing, it does not consider the specific challenges of renting to Section 8 participants in this area. Landlords must balance the benefits of stable, government-backed rental income with the realities of local demand and tenant preferences. Therefore, investors should focus on the 3.73% gross yield as a more accurate representation of potential returns when considering Section 8 participation in Woodruff, SC.
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.