Location: Myrtle Beach-North Myrtle Beach-Conway, SC | Metro: Myrtle Beach-North Myrtle Beach-Conway, 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 | $1,330 |
| 1 Bedroom | $1,450 |
| 2 Bedrooms | $1,730 |
| 3 Bedrooms | $2,100 |
| 4 Bedrooms | $2,280 |
| 5 Bedrooms | $2,645 |
| 6 Bedrooms | $2,962 |
| 7 Bedrooms | $3,199 |
| 8 Bedrooms | $3,359 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,450 | $114,129 | 1.27% | A |
| 2BR | $1,730 | $193,056 | 0.9% | C |
| 3BR | $2,100 | $334,633 | 0.63% | D |
| 4BR | $2,280 | $413,777 | 0.55% | F |
| 5BR | $2,645 | $448,683 | 0.59% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 29566, Little River, SC, provides a detailed look at the potential returns for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a 2-bedroom unit in FY 2024 is set at $1320 per month, while the Zillow Observed Rent Index (ZORI) indicates a market rent of $1,527 per month.
To derive the gross yield, we annualize these figures. For the FMR scenario, the annual rent comes to $15,840 ($1320 x 12 months). Given the median home value of $318,404, the implied gross yield is approximately 4.98%. This calculation is done by dividing the annual rent by the median home value. For the market rent scenario, the annual rent is $18,324 ($1,527 x 12 months), resulting in an implied gross yield of about 5.75%.
The gross yields indicate that the market rent scenario offers a higher return compared to the FMR scenario. However, it's important to consider the local rental market dynamics. With a renter density of 19.0%, the demand for rental properties is relatively low, suggesting that landlords might face challenges in filling units. Additionally, the Days on Market (DOM) of 64 days implies that it takes slightly over two months to find a tenant, which could be indicative of a slower rental market.
Given these factors, the FMR scenario may be more realistic for landlords and investors in Little River, SC. While the gross yield is lower at 4.98%, the stability provided by the Section 8 program can outweigh the slightly higher yield offered by market rents. The lower gross yield in the FMR scenario reflects the guaranteed income stream and reduced vacancy risk associated with the Section 8 program, making it a more predictable investment option despite the lower return.
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.