Location: Colleton County, 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 | $1,030 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,520 |
| 4 Bedrooms | $1,900 |
| 5 Bedrooms | $2,204 |
| 6 Bedrooms | $2,468 |
| 7 Bedrooms | $2,665 |
| 8 Bedrooms | $2,798 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,080 | $253,905 | 0.43% | F |
| 2BR | $1,240 | $423,401 | 0.29% | F |
| 3BR | $1,520 | $670,743 | 0.23% | F |
| 4BR | $1,900 | $920,999 | 0.21% | F |
| 5BR | $2,204 | $1,413,206 | 0.16% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 29438, Edisto Beach, SC, hinges on the interplay between its yield potential and stability metrics. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $1,410, which stands notably above the local market rent of $888. This gap suggests a high-yield environment for landlords who can leverage the FMR to secure higher rents through Section 8 housing vouchers.
However, the stability of the market is tempered by several factors. Only 11.9% of residents are renters, indicating a predominantly owner-occupied community. This low rental rate could pose challenges for landlords seeking a broad tenant base. Additionally, the median household income of $86,979 is relatively high, potentially reducing the pool of eligible Section 8 tenants who typically have lower incomes. The lack of data on days on market (DOM) further complicates the assessment of rental property turnover rates.
The median home value of $726,252 is significantly higher than both the FMR and market rent, suggesting that properties in this ZIP code are primarily luxury homes. This high home value could make it difficult to find affordable rental units suitable for Section 8 participants, as the program targets lower-cost housing options.
Given these figures, Edisto Beach leans towards being a high-yield but low-stability market. The substantial difference between the FMR and market rent implies a strong financial incentive for landlords to participate in the Section 8 program. However, the limited rental market and higher income levels may constrain the number of available tenants, thereby affecting the long-term stability of cash flows for rental properties.
To summarize, landlords and small-portfolio investors should approach Edisto Beach with caution. While the potential for high yields exists, the market's instability due to low rental rates and higher income levels means that steady cash flow cannot be guaranteed. This makes it less ideal for those seeking a consistently stable rental income and more suited for those willing to navigate the challenges of a niche, high-end rental market.
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.