Section 8 Fair Market Rent (FMR) for ZIP 29415 - 2027

FY 2027 Fair Market Rent Rates

The analysis of the Section 8 cap rate for ZIP code 29415 in Unknown, South Carolina, reveals a complex picture due to limited data availability. The Fair Market Rent (FMR) for a two-bedroom apartment in fiscal year 2024 is set at $1640 per month. Annualizing this figure, we get a total annual rental income of $19,680.

Unfortunately, the market rent for a two-bedroom property in ZIP 29415 is currently not available, as is the median home value. This makes it challenging to provide an accurate comparison between the Section 8 rent and market rent. However, assuming that the median home value is representative of the area's housing costs, we can still derive some insights into the potential gross yield.

If we consider the FMR of $19,680 as the annual rental income, the implied gross yield would be calculated based on the median home value. For instance, if the median home value were $250,000, the gross yield would be approximately 7.87%. This calculation assumes that the property is valued at $250,000, which is purely illustrative given the lack of actual data.

Given the unavailability of the market rent, we cannot calculate a precise gross yield for that scenario. However, it is important to note that in many areas, market rents often exceed the FMR for Section 8 properties. If the market rent were higher, say $2,000 per month, the annualized market rent would be $24,000. This would result in a higher gross yield if the median home value remains constant at $250,000, increasing to 9.6%.

The lack of specific data on renter density and days on market (DOM) further complicates the analysis. Typically, a higher renter density suggests a stronger demand for rental properties, which could support higher market rents. A shorter DOM indicates quicker turnover, which is generally favorable for landlords. Without these figures, it is difficult to determine which scenario is more realistic.

In conclusion, while the FMR provides a baseline for rental income at $19,680 annually, the absence of market rent and median home value data hinders a comprehensive comparison. Assuming a median home value of $250,000, the gross yield for Section 8 properties would be around 7.87%, whereas a higher market rent would imply a gross yield of 9.6%. Investors should use this information as a starting point and conduct their own detailed analysis, including local market conditions and property specifics.

Data Sources: FMR data from HUD (2027).

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.