Location: Florence, SC | Metro: Florence, SC HUD Metro FMR Area
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 | $1,200 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,370 |
| 3 Bedrooms | $1,770 |
| 4 Bedrooms | $1,890 |
| 5 Bedrooms | $2,192 |
| 6 Bedrooms | $2,455 |
| 7 Bedrooms | $2,651 |
| 8 Bedrooms | $2,784 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,370 | $155,368 | 0.88% | C |
| 3BR | $1,770 | $223,536 | 0.79% | D |
| 4BR | $1,890 | $328,541 | 0.58% | F |
| 5BR | $2,192 | $412,655 | 0.53% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 29505, located in Florence, South Carolina, might raise several concerns regarding the viability of investing in properties eligible for Section 8 housing. Here's a direct look at those concerns using available data.
Objection 1: Will FMR $1,200 (zip FY 2024) cover the mortgage on a $230,676 home?
The Fair Market Rent (FMR) for ZIP 29505 in fiscal year 2024 is set at $1,200. This figure represents the average monthly rent that Section 8 tenants can expect to pay. To determine if this amount will sufficiently cover the mortgage on a $230,676 home, consider the typical interest rates and loan terms. Assuming an interest rate of 4.5% and a 30-year fixed-rate mortgage, the monthly payment would be approximately $1,130, which is below the FMR. Thus, the FMR should comfortably cover the mortgage payments for a property of this value.
Objection 2: Is there enough renter demand at 29.4%?
The rental vacancy rate for ZIP 29505 stands at 29.4%. This high percentage could suggest low renter demand, but it's important to understand the context. A higher vacancy rate means there is competition among landlords, which can drive down rental prices. However, it also indicates a potential for attracting new renters who might find the area appealing due to affordable housing options. While the high vacancy rate is a concern, it does not necessarily mean there is insufficient demand; rather, it suggests that pricing strategies may need to be adjusted to attract tenants.
Objection 3: Will vouchers keep pace with $1,518 market rents?
The market rent for ZIP 29505 is $1,518 per month, which is above the FMR. Landlords may worry that the voucher amounts will not keep up with market conditions, leading to a shortfall. According to the data, the voucher amounts are designed to reflect local housing costs and are adjusted annually based on HUD guidelines. While the exact future adjustments are not known, historically, they have aimed to stay close to the FMR. Therefore, while there may be a slight shortfall initially, landlords should anticipate annual increases in voucher amounts to help bridge the gap between the FMR and market rents.
In conclusion, while there are valid concerns about covering mortgage payments, renter demand, and voucher adequacy, the data suggests that with proper management and understanding of local market dynamics, investing in Section 8 properties in ZIP 29505 can be financially viable. Adjusting expectations and strategies to align with the current rental environment is key to success.
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.