Location: Williamsburg County, SC | Metro: Williamsburg 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 | $640 |
| 1 Bedroom | $680 |
| 2 Bedrooms | $890 |
| 3 Bedrooms | $1,110 |
| 4 Bedrooms | $1,350 |
| 5 Bedrooms | $1,566 |
| 6 Bedrooms | $1,754 |
| 7 Bedrooms | $1,894 |
| 8 Bedrooms | $1,989 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $890 | $100,268 | 0.89% | C |
| 3BR | $1,110 | $130,218 | 0.85% | C |
| 4BR | $1,350 | $200,110 | 0.67% | D |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 29556, centered around Kingstree, SC, is based on the significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2026, the FMR stands at $900, while the Census ACS reports the market rent at $597. This creates a $303 difference, or a 50.6% premium, in favor of the FMR.
This gap makes ZIP 29556 a prime location for a yield play through Section 8 vouchers. Landlords can capitalize on the higher FMR set by HUD, which ensures a stable and reliable source of rental income. The FMR is significantly above the local market rate, making it an attractive option for those looking to invest in real estate without the volatility associated with the open market.
In Kingstree, SC, where 25.4% of the population are renters, the median home value is $112,334 and the median income is $42,365. These figures indicate that the area has a substantial number of residents who rely on affordable housing options. By accepting Section 8 vouchers, landlords can provide much-needed housing assistance to low-income families, ensuring that their properties remain occupied and generating a consistent cash flow.
The cost of housing voucher tenants below open-market rates is negligible compared to the benefits. With the FMR being $900, landlords can charge a rate that is substantially higher than what most local renters might pay on the open market. This means that even though voucher tenants may not be paying the highest possible rent, they are still providing a solid return on investment, especially when considering the stability that comes with government-backed payments.
To summarize, the gap between the FMR and market rent in ZIP 29556 presents a clear opportunity for landlords and small-portfolio investors to achieve a favorable yield. The high FMR, combined with the local context of Kingstree, SC, makes it a viable and profitable strategy to accept Section 8 vouchers.
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.