Section 8 Fair Market Rent (FMR) for ZIP 29486 - 2027

Investment Score for ZIP 29486

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	$1,760
1 Bedroom	$1,840
2 Bedrooms	$2,000
3 Bedrooms	$2,480
4 Bedrooms	$2,850
5 Bedrooms	$3,306
6 Bedrooms	$3,703
7 Bedrooms	$3,999
8 Bedrooms	$4,199

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	$2,000	$405,210	0.49%	F
3BR	$2,480	$359,813	0.69%	D
4BR	$2,850	$420,732	0.68%	D
5BR	$3,306	$467,172	0.71%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 29486 (Summerville, SC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 29486 is set by HUD for 2026 as follows: - 0BR: $1610 - 1BR: $1690 - 2BR: $1850 (which is 24.8% of the median household income) - 3BR: $2300 - 4BR: $2650 These figures represent the maximum rent that a Section 8 voucher holder can pay based on the size of their unit. However, the actual rents in Summerville are significantly higher. For instance, the Zillow median price for a 2BR property is $403,049. This translates into a rental cost that is approximately 18.2 times the FMR for a 2BR unit. Given this high price-to-FMR ratio, it is clear that the actual rents in Summerville far exceed the FMR, which poses significant constraints for voucher holders. They will likely struggle to find properties within their budget, especially if landlords do not accept vouchers due to the low reimbursement rates relative to market rents. #### Affordability & Renter Profile Summerville has a population of 53,975, with 22.0% of residents being renters. The occupancy rate stands at 93.7%, indicating a relatively tight market where most available units are occupied. With a median household income of $89,578, the majority of residents can afford the higher-than-average rental costs. However, for those relying on Section 8 vouchers, the situation is quite challenging. A 2BR unit at FMR ($1850) represents only 24.8% of the median income, which means that even without assistance, these units would be affordable to many residents. But since the actual market rents are much higher, voucher holders face difficulties finding suitable housing. The high price-to-FMR ratio suggests that the market is competitive and potentially overpriced for subsidized renters. The 2BR units, which are priced at $403,049, would translate to a monthly rental cost of around $1610-$1680 based on typical mortgage-to-rent conversion ratios. This is already above the FMR but still far below the actual market rents, which are estimated to be closer to $18,000 annually or $1500 per month. Therefore, the market is tight, and there is little room for voucher holders to negotiate lower rents. #### Investor Angle From an investor’s perspective, the ZIP code 29486 presents a mixed picture. While the high median home values and occupancy rates indicate strong demand, the reliance on market rents rather than FMRs means that potential returns are higher. However, the challenge lies in attracting tenants who use Section 8 vouchers. Given that the actual market rents are about 18.2 times the FMR, it is unlikely that many landlords would accept vouchers unless they are willing to accept a lower reimbursement rate. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical rental yields. If a landlord were to rent out a 2BR unit at FMR ($1850), the annual income would be $22,200. Considering the median home value of $403,049, a conservative estimate of rental yield would be around 4-5%. This would mean an annual rental income of $16,122 to $20,152, which is significantly lower than what could be achieved with market rents. Given the high price-to-FMR ratio, the investment grade for this ZIP code is moderate to low for Section 8-focused investors. The primary constraint is the limited pool of tenants who can only afford FMR, while the broader market is geared towards higher rents. #### Specific Actionable Insights 1. **Target Non-Voucher Tenants**: Given the high price-to-FMR ratio, investors should focus on renting to non-voucher tenants who can afford the higher market rates. This strategy would likely result in better cash flow and higher returns on investment. 2. **Consider Mixed Housing Strategies**: Investors might want to explore mixed housing strategies where some units are rented at market rates and others are rented to voucher holders. This approach can help balance the financial impact of accepting vouchers with the higher returns from market-rate rentals. 3. **Engage with Local Real Estate Agents**: To understand the local rental dynamics better, engage with local real estate agents who can provide insights into the types of properties that are in demand and the willingness of landlords to accept Section 8 vouchers. This can help tailor investment strategies to the local market conditions. #### Bottom Line For Section 8-focused investors, the recommendation is to **Skip** this ZIP code. The high price-to-FMR ratio and the tight market make it difficult to find properties that are both affordable and attractive to voucher holders. Additionally, the higher market rents suggest that there is a larger pool of non-subsidized renters, making it less financially viable to rely solely on Section 8 vouchers for rental income. Investors looking to maximize returns should consider other markets with a more favorable price-to-FMR ratio.

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.