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 | $2,200 |
| 1 Bedroom | $2,300 |
| 2 Bedrooms | $2,500 |
| 3 Bedrooms | $3,100 |
| 4 Bedrooms | $3,570 |
| 5 Bedrooms | $4,141 |
| 6 Bedrooms | $4,638 |
| 7 Bedrooms | $5,009 |
| 8 Bedrooms | $5,259 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,500 | $756,627 | 0.33% | F |
| 3BR | $3,100 | $1,027,816 | 0.3% | F |
| 4BR | $3,570 | $1,599,131 | 0.22% | F |
| 5BR | $4,141 | $2,157,473 | 0.19% | F |
U.S. Census Bureau data (2024)
The real estate market in ZIP 29439, Folly Beach, SC, is characterized by a strong pricing power that will likely persist over the next 12 to 24 months. The median home value stands at a robust $1,083,925, indicating a high-end residential market. This figure is supported by the fact that only 0.2% of listings have been reduced, suggesting that sellers are maintaining their asking prices despite any economic uncertainties. The absence of a median Days on Market (DOM) figure further reinforces the idea that homes in this area sell quickly, often before reaching a typical DOM metric.
On the rental side, the Federal Market Rent (FMR) for ZIP 29439 is set at $1,380 for fiscal year 2024, while the actual market rent is significantly higher at $1,844. This gap between FMR and market rent highlights an opportunity for landlords and small-portfolio investors who can capitalize on the discrepancy. The higher market rents suggest a demand for rental properties that exceeds the government's estimate, which could continue to support strong rental income.
For long-term investors, the setup in Folly Beach implies a realistic appreciation thesis. The combination of high median home values, minimal price reductions, and a healthy rental market suggests that property values are likely to remain stable or even increase. This stability is crucial for those looking to hold onto their investments for extended periods, as it minimizes the risk of significant declines in property value and supports steady growth.
However, it's important to note that the lack of a median DOM figure also points to potential volatility in the market. While the current trend indicates strong seller's market conditions, the absence of this data might be signaling a unique market dynamic where sales occur rapidly but irregularly. Long-term investors should be prepared for such fluctuations and consider diversifying their portfolios to mitigate risks.
In summary, the current median home value, the low percentage of price reductions, and the higher-than-FMR rental rates paint a picture of a resilient market in Folly Beach. This resilience supports a favorable environment for both homeownership and rental investments, with the potential for continued value appreciation. Long-term investors should focus on properties that offer a balance between high resale value and attractive rental yields, leveraging the strong local demand for housing.
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.