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 | $650 |
| 1 Bedroom | $690 |
| 2 Bedrooms | $900 |
| 3 Bedrooms | $1,070 |
| 4 Bedrooms | $1,330 |
| 5 Bedrooms | $1,543 |
| 6 Bedrooms | $1,728 |
| 7 Bedrooms | $1,866 |
| 8 Bedrooms | $1,959 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $900 | $140,574 | 0.64% | D |
| 3BR | $1,070 | $210,365 | 0.51% | F |
| 4BR | $1,330 | $306,580 | 0.43% | F |
| 5BR | $1,543 | $439,341 | 0.35% | F |
U.S. Census Bureau data (2024)
Investing in Section 8 properties in ZIP code 29488, located in Walterboro, SC, comes with several potential pitfalls. Firstly, tenant turnover can be a significant issue. The market rent stands at $950, while the Fair Market Rent (FMR) for the fiscal year 2026 is set at $900. This difference can lead to higher turnover rates as tenants might prefer the stability and cost-effectiveness of FMR-based rents.
Vacancy exposure is another concern. With the days on market (DOM) being listed as N/A, it's challenging to predict how quickly a vacant property can be filled. This uncertainty can result in extended periods without rental income, impacting cash flow and profitability.
The typical home value in the area is $210,868, while the median income is $49,876. These figures suggest that homeowners might struggle to keep up with maintenance costs, leading to deferred repairs. For landlords, this could mean inheriting properties that require significant investment to meet Section 8 standards, potentially increasing the initial outlay and ongoing expenses.
However, these risks must be weighed against the high renter share in the area, which is 33.5%. High renter density typically correlates with higher demand for rental housing, including Section 8 vouchers. This demand can help mitigate some of the risks associated with tenant turnover and vacancy exposure, ensuring a steady stream of potential tenants.
In conclusion, despite the challenges posed by tenant turnover, vacancy exposure, and deferred maintenance, the high renter share in ZIP 29488 makes it a moderate risk for a first-time Section 8 landlord. The demand for rentals provides a buffer against some of the inherent risks, but careful management and financial planning will still be necessary to ensure success.
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.