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 | $1,540 |
| 1 Bedroom | $1,610 |
| 2 Bedrooms | $1,750 |
| 3 Bedrooms | $2,170 |
| 4 Bedrooms | $2,500 |
| 5 Bedrooms | $2,900 |
| 6 Bedrooms | $3,248 |
| 7 Bedrooms | $3,508 |
| 8 Bedrooms | $3,683 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,750 | $199,572 | 0.88% | C |
| 3BR | $2,170 | $305,046 | 0.71% | D |
| 4BR | $2,500 | $354,707 | 0.7% | D |
| 5BR | $2,900 | $411,914 | 0.7% | D |
U.S. Census Bureau data (2024)
The Section 8 housing market in ZIP code 29406, North Charleston, SC, presents a nuanced opportunity for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the area is set at $1410 for fiscal year 2024. In comparison, the Zillow Observed Rent Index (ZORI) indicates a market rent of $1604. This suggests that voucher tenants will only cashflow marginally at the FMR rate, with landlords needing to consider slight cost adjustments or improvements to ensure profitability.
To further analyze the investment potential, the median home value in the area stands at $298,602. Using this figure, we can calculate a rent-to-price ratio of approximately 0.54%. This ratio implies that rental income constitutes a modest portion of the total property value, indicating that appreciation or stability might be more significant factors for long-term investment success rather than pure cash flow.
Note that the median days on market (DOM) is listed as N/A, and the share of listings making price cuts is 0.2%. These figures suggest that the real estate market in North Charleston is relatively stable, with little need for frequent price adjustments. Given the tight correlation between rental markets and broader real estate trends, the stability of the housing market can positively influence the rental sector, providing consistent and predictable returns.
The strongest angle for Section 8 investors in ZIP 29406 is likely stability. With minimal fluctuations in the market and a steady demand for affordable housing, landlords can expect reliable tenant occupancy and rent payments over time, making it an attractive option for those seeking a low-risk investment strategy.
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.