Section 8 Fair Market Rent (FMR) for ZIP 29485 - 2027

Investment Score for ZIP 29485

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	$1,640
1 Bedroom	$1,710
2 Bedrooms	$1,860
3 Bedrooms	$2,310
4 Bedrooms	$2,650
5 Bedrooms	$3,074
6 Bedrooms	$3,443
7 Bedrooms	$3,718
8 Bedrooms	$3,904

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	$1,860	$242,689	0.77%	D
3BR	$2,310	$336,887	0.69%	D
4BR	$2,650	$415,541	0.64%	D
5BR	$3,074	$482,256	0.64%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 29485 (Summerville, SC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Summerville, SC (ZIP 29485) in 2026 is set at $1760 for a two-bedroom unit, which represents 25.4% of the median household income of $82,987. This indicates that the FMR is relatively affordable compared to the local income levels. However, it's important to understand how these FMRs compare to actual rental prices in the area. According to the data provided, the Zillow median price for a two-bedroom home in this ZIP code is $238,287. The price-to-FMR ratio is 11.3x, meaning that the median home value is significantly higher than the rent for a similar-sized unit. This suggests that the rental market is generally lower priced than the purchase market, but still, the actual rents could be higher than the FMRs. For voucher holders, the primary constraint is that landlords are not required to accept Section 8 vouchers if they exceed the FMR. In practice, this means that tenants with Section 8 vouchers might struggle to find units that are both within their budget and available. Given the occupancy rate of 93.7%, there is little vacancy, making it even harder for voucher holders to secure housing. #### Affordability & Renter Profile Summerville has a population of 58,507, with 25.9% of households being renters. This indicates a significant portion of the community relies on rental housing. The median household income of $82,987 suggests that the area is relatively affluent, which can impact the affordability of housing for lower-income residents. Given that 25.4% of the median income is allocated towards a two-bedroom unit, it implies that the rental market is fairly tight. With an occupancy rate of 93.7%, there is minimal vacancy, indicating strong demand for rental properties. This tight market makes it challenging for lower-income individuals to find affordable housing, especially those relying on Section 8 vouchers. #### Investor Angle From an investor perspective, the key question is whether the rental market is cash-flow positive at the FMR levels. The FMRs for 2026 are as follows: - 0BR: $1530 - 1BR: $1610 - 2BR: $1760 - 3BR: $2190 - 4BR: $2520 To determine if these rents are sufficient for positive cash flow, we need to consider the typical operating expenses, including property taxes, insurance, maintenance, and utilities. While specific expense data is not provided, we can infer that the rental rates are likely to cover basic costs given the relatively high median income and the fact that the rental market is tight. However, the price-to-FMR ratio of 11.3x suggests that the cost of purchasing a property is much higher than the potential rental income. This ratio is calculated by dividing the median home value ($238,287) by the FMR for a two-bedroom unit ($1760). This high ratio indicates that the investment grade is low, as the rental income would not justify the purchase price based on traditional metrics. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units (0BR and 1BR) where the FMRs are lower. For instance, a 0BR unit with an FMR of $1530 might be more financially viable compared to a 2BR unit with an FMR of $1760. 2. **Consider Long-Term Rental Strategies**: Instead of looking solely at short-term cash flow, investors might want to consider long-term rental strategies. With a strong demand for rentals and a high occupancy rate, there is potential for steady rental income over time, even if initial returns are modest. 3. **Engage with Local Landlords**: To better understand the local rental dynamics, investors should engage with local landlords who already accept Section 8 vouchers. This will provide insights into the realities of the market and help identify opportunities that align with the FMR guidelines. #### Bottom Line For Section 8-focused investors, the recommendation is to **Skip** this ZIP code. The high price-to-FMR ratio and the tight rental market make it difficult to achieve positive cash flow, especially when considering the additional challenges associated with finding properties that accept Section 8 vouchers. Investors might find more attractive opportunities in areas with a lower price-to-FMR ratio and more manageable rental market conditions.

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.