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 | $1,050 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,200 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,200 | $149,269 | 0.8% | C |
| 3BR | $1,550 | $211,092 | 0.73% | D |
| 4BR | $1,650 | $309,812 | 0.53% | F |
U.S. Census Bureau data (2024)
Effingham, SC, ZIP code 29541, is a modest-sized community with a population of 9,326 residents. The area has a relatively low percentage of renters at 20.3%, indicating a primarily owner-occupied neighborhood. The median household income in the region stands at $52,067, reflecting a middle-class living standard. The median home value of $211,071 suggests that homeownership is accessible to many local families, but it also points to a market where there's potential for both appreciation and stability.
When it comes to rental economics, the Federal Market Rent (FMR) for ZIP code 29541 in fiscal year 2024 is set at $1,130. This figure contrasts sharply with the actual market rent reported by the Census Bureau's American Community Survey, which is $991. The difference between these two figures highlights a potential opportunity for landlords and small-portfolio investors who can leverage the higher FMR to secure Section 8 tenants, thereby ensuring steady cash flow while potentially charging below the market rate.
The disparity between the FMR and market rent points towards a scenario where a hands-off voucher operator might find success. The higher FMR provides a buffer against the lower market rents, allowing operators to maintain profitability without the need for extensive property management or renovation efforts. On the other hand, a value-add buyer could capitalize on the discrepancy by improving properties to command closer to the FMR, thereby increasing their rental income. However, this strategy would require a hands-on approach, including understanding the local housing market, identifying undervalued properties, and making strategic investments to enhance property value and attract higher-paying tenants.
In summary, Effingham, SC, offers a balanced environment for both passive and active real estate investors. For those seeking a stable, low-maintenance investment, the current economic conditions support a hands-off approach. Meanwhile, for investors willing to engage actively in property management and improvement, there are opportunities to increase returns by aligning rents with the FMR.
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.