Section 8 Fair Market Rent (FMR) for ZIP 29456 - 2027

Investment Score for ZIP 29456

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,670
1 Bedroom	$1,740
2 Bedrooms	$1,890
3 Bedrooms	$2,340
4 Bedrooms	$2,700
5 Bedrooms	$3,132
6 Bedrooms	$3,508
7 Bedrooms	$3,789
8 Bedrooms	$3,978

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,890	$220,741	0.86%	C
3BR	$2,340	$300,774	0.78%	D
4BR	$2,700	$368,038	0.73%	D
5BR	$3,132	$425,171	0.74%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 29456 (Ladson, SC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 29456, as of 2026, is set at $1780 for a two-bedroom unit. This represents 27.3% of the median household income of $78,361, which is relatively affordable for renters. However, it is important to note that the actual rent charged by landlords often exceeds the FMR. The price-to-FMR ratio of 10.2x indicates that the median home value on Zillow for a two-bedroom unit is $217,026, suggesting that rental properties are priced significantly higher than the FMR. For voucher holders, this means that finding units within the FMR limit can be challenging. They are constrained to a limited pool of properties, many of which may not meet their needs or preferences. #### Affordability & Renter Profile With a population of 41,214 and a renter percentage of 38.3%, the ZIP code has a significant number of residents who rely on rental housing. Given the median household income of $78,361, the affordability of rental units is a critical factor. The occupancy rate of 93.6% suggests that the market is tight, with few vacancies available. This high demand and low supply scenario typically leads to higher rental prices, making it difficult for lower-income households to find affordable housing options. The 2BR FMR of $1780 is only 27.3% of the median income, indicating that while it is affordable for some, it may still be a stretch for others, especially those relying solely on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 29456 offers mixed opportunities. While the median home value for a two-bedroom unit is $217,026, the FMR of $1780 provides a benchmark for rental pricing. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical mortgage payments, property taxes, insurance, maintenance costs, and other expenses associated with owning a rental property. Assuming a 20% down payment on a $217,026 home, the mortgage would be approximately $173,620. With a 30-year fixed-rate mortgage at a current average rate of 6.5%, the monthly mortgage payment would be around $1,070. Adding in estimated property taxes of $2,000 annually ($167 per month), homeowner’s insurance of $1,000 annually ($83 per month), and maintenance costs of $100 per month, the total monthly expenses would be roughly $1,420. At the FMR of $1780, this would result in a positive cash flow of about $360 per month before considering other potential costs like utilities and management fees. However, the investment grade is somewhat compromised due to the tight market and the fact that many units are priced above the FMR. Investors should be prepared for competition and the possibility that they might have to charge more than the FMR to make a profit, which could limit the pool of eligible tenants. #### Specific Actionable Insights 1. **Target Lower-Rent Units**: Focus on acquiring properties that are priced close to or below the FMR. For instance, a two-bedroom unit priced at $1780 or less would be ideal for attracting Section 8 voucher holders. This strategy ensures compliance with HUD guidelines and maximizes the likelihood of tenant eligibility. 2. **Consider Multi-Family Properties**: Given the high occupancy rate and the tight market, multi-family properties might offer better returns. A 2BR unit priced at $1780 would yield a positive cash flow, but a larger multi-family property could provide economies of scale and diversify risk across multiple units. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can help secure a steady stream of Section 8 tenants. Understanding the specific requirements and processes can also streamline the leasing process and reduce vacancy rates. #### Bottom Line For Section 8-focused investors, ZIP code 29456 presents a moderately favorable environment. The tight market and high occupancy rate indicate strong demand, but the challenge lies in finding units that are priced within the FMR limits. Given the data, a **"Hold"** recommendation seems most appropriate. Investors should carefully evaluate the specific properties and ensure they can operate within the FMR constraints to maintain positive cash flow. Additionally, engaging with local housing authorities and targeting lower-rent units will be crucial for success in this market.

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.