Location: Marion County, SC | Metro: Marion County, SC
| Unit Size | Monthly FMR |
|---|---|
| Studio | $640 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $890 |
| 3 Bedrooms | $1,140 |
| 4 Bedrooms | $1,290 |
| 5 Bedrooms | $1,496 |
| 6 Bedrooms | $1,676 |
| 7 Bedrooms | $1,810 |
| 8 Bedrooms | $1,901 |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 29546 is centered around the significant gap between the Fair Market Rent (FMR) set at $900 for the fiscal year 2026 and the actual market rent, which stands at $671 according to the Census ACS data. This represents a difference of $229, or approximately 34%, favoring the FMR over the market rent.
The discrepancy makes this area a compelling yield play for landlords and small-portfolio investors. By participating in the Section 8 program, you can secure higher rental income compared to what the open market offers. The FMR is designed to cover the costs of housing that meet minimum standards of decency, including utilities, which means that even though the market rent is lower, the guaranteed payment through the voucher program ensures a steady, above-market rate income stream.
In ZIP 29546, where 30.5% of residents are renters, and the median home value is $127,624, the median income of $32,043 suggests that many families would struggle to afford housing without assistance. Therefore, the high FMR relative to market rent is particularly advantageous for landlords who might otherwise be competing in a lower-rent market.
The cost of housing voucher tenants below open-market rates does not apply here, as the FMR exceeds the market rent. However, it's important to note that landlords must still maintain their properties to meet HUD standards and may incur some administrative costs associated with the voucher program. Despite these considerations, the financial benefits of receiving a higher rental payment, coupled with the stability provided by government-backed vouchers, outweigh the potential drawbacks.
To summarize, the gap between FMR and market rent in ZIP 29546 presents an opportunity for landlords to achieve higher yields while providing affordable housing options to those in need. The local economic context supports this strategy, making it a viable option for investors looking to maximize returns in this region.
Data Sources: FMR data from HUD (2027). 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.