Location: Colleton County, SC | Metro: Colleton County, SC
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 | $690 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,130 |
| 4 Bedrooms | $1,360 |
| 5 Bedrooms | $1,578 |
| 6 Bedrooms | $1,767 |
| 7 Bedrooms | $1,908 |
| 8 Bedrooms | $2,003 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,130 | $194,508 | 0.58% | F |
| 4BR | $1,360 | $303,087 | 0.45% | F |
U.S. Census Bureau data (2024)
A landlord considering purchasing a property in ZIP code 29475 for Section 8 purposes must navigate several key factors to make an informed decision. The first step is to evaluate whether the Fair Market Rent (FMR) of $940 for the metro area in fiscal year 2026 can cover the debt service on a property valued at $199,490. This involves calculating the monthly mortgage payment and other expenses to see if the FMR can meet those obligations.
If the FMR of $940 does indeed cover the total debt service, the next question is to compare the market rent of $843 (as reported by the Census ACS) against the FMR. Here, we see that the market rent is below the FMR. This means that landlords could potentially receive a higher rent subsidy compared to the actual market conditions, making Section 8 participation more financially attractive.
The third consideration is the demand for rental properties. In ZIP 29475, 15.0% of the population are renters. However, the data on Days on Market (DOM) is marked as N/A, which makes it difficult to assess how quickly properties are rented out. Despite this lack of information, the percentage of renters suggests a steady demand for rental units.
Decision Tree:
Does FMR clear debt service?
Yes: Proceed to the next evaluation.
No: Section 8 participation would not be financially viable.
Is market rent above, at, or below FMR?
Above: Section 8 subsidies might not fully cover the rent gap, reducing financial attractiveness.
At: Section 8 subsidies exactly match market rents, maintaining neutral financial viability.
Below: Section 8 subsidies exceed market rents, enhancing financial attractiveness.
Are there sufficient renters and quick DOM?
Yes: There is likely enough demand to ensure steady occupancy.
No: Insufficient demand could lead to vacancies and financial strain.
It Depends: With only 15.0% of the population renting and unknown DOM data, the demand is moderate but requires further investigation into local vacancy rates and competition.
In conclusion, if the FMR of $940 clears the debt service on a property priced at $199,490, and the market rent of $843 is below the FMR, then Section 8 participation is financially favorable. However, the moderate rental population of 15.0% and the lack of DOM data mean that while there is demand, it is not guaranteed to be robust. Landlords should consider these points carefully and possibly seek additional local market analysis before making a purchase decision.
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.