Location: Charleston-North Charleston, SC | Metro: Charleston-North Charleston, SC MSA
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 | $2,120 |
| 1 Bedroom | $2,200 |
| 2 Bedrooms | $2,400 |
| 3 Bedrooms | $2,980 |
| 4 Bedrooms | $3,420 |
| 5 Bedrooms | $3,967 |
| 6 Bedrooms | $4,443 |
| 7 Bedrooms | $4,798 |
| 8 Bedrooms | $5,038 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,200 | $576,881 | 0.38% | F |
| 2BR | $2,400 | $1,137,380 | 0.21% | F |
| 3BR | $2,980 | $2,125,671 | 0.14% | F |
| 4BR | $3,420 | $3,123,794 | 0.11% | F |
| 5BR | $3,967 | $4,713,836 | 0.08% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 29401 in Charleston, SC, hinges on the analysis of its financial metrics and rental market dynamics. With a Fair Market Rent (FMR) of $1,960 for fiscal year 2024, the median market rent stands at $3,738. This significant gap suggests a high-yield potential for properties leased through Section 8 programs. However, the average home value in the area is quite high, sitting at $1,473,736, which might indicate that the overall property investment costs are elevated.
In terms of stability, the rental market in ZIP 29401 is moderately robust with 39.8% of residents being renters. The lack of data on days on market (DOM) makes it difficult to assess the speed at which properties are rented out, but the median household income of $99,667 implies that there is a reasonable economic base supporting the rental market.
Given these figures, ZIP 29401 leans towards a steady cash-flow zone. The substantial difference between FMR and market rent indicates a strong potential for higher yields when properties are leased under the Section 8 program. However, the high home values and moderate renter population suggest that while the returns can be good, the market is not as volatile or prone to rapid turnover as a typical flip-style market would be. Instead, the stability of the income level supports a more consistent and reliable cash flow, making it suitable for long-term investments rather than short-term flips.
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.