Location: Williamsburg County, SC | Metro: Clarendon 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 | $730 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,250 | $129,215 | 0.97% | C |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 29518 provides valuable insights into the potential returns for landlords and small-portfolio investors. Based on the data, the Fair Market Rent (FMR) for a 2-bedroom apartment in fiscal year 2024 is set at $910 per month, while the market rent stands at $1,019 per month according to the Census ACS.
To calculate the gross yield, we annualize these figures and compare them to the median home value of $149,661. For the Section 8 scenario, the annualized rent would be $10,920 ($910 x 12 months), leading to a gross yield of approximately 7.3%. This is calculated by dividing the annualized rent by the median home value: $10,920 / $149,661 = 0.073, or 7.3%.
In contrast, if we consider the market rent of $1,019 per month, the annualized rent would be $12,228 ($1,019 x 12 months). This translates to a gross yield of about 8.2%, calculated as $12,228 / $149,661 = 0.082, or 8.2%.
The implied gross-yield for both scenarios is thus 7.3% for Section 8 and 8.2% for market rent. Given the 23.2% renter density in the area, it's important to note that the number of days on market (DOM) is listed as N/A, which suggests limited data on how quickly properties are rented out. However, the higher renter density indicates a significant portion of the population relies on rental housing, making the market rent scenario more likely for those willing to manage the risk associated with non-governmental tenants.
While the Section 8 program offers stable, government-backed income, the lower gross yield reflects the trade-off for guaranteed payments. On the other hand, market rent offers a slightly higher return but comes with the uncertainty of finding and retaining non-subsidized tenants. Investors should weigh the benefits of stability against the potential for higher yields when deciding between these two options.
Ultimately, the decision hinges on the investor's risk tolerance and investment goals. For those prioritizing steady cash flow and less tenant turnover, the Section 8 gross yield of 7.3% is attractive. Conversely, for those aiming to maximize returns and willing to handle the challenges of the private rental market, the market rent gross yield of 8.2% presents a more lucrative opportunity.
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.