Section 8 Fair Market Rent (FMR) for ZIP 29579 - 2027

Investment Score for ZIP 29579

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,410
1 Bedroom	$1,540
2 Bedrooms	$1,840
3 Bedrooms	$2,230
4 Bedrooms	$2,420
5 Bedrooms	$2,807
6 Bedrooms	$3,144
7 Bedrooms	$3,396
8 Bedrooms	$3,566

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,540	$116,471	1.32%	A
2BR	$1,840	$179,725	1.02%	B
3BR	$2,230	$325,305	0.69%	D
4BR	$2,420	$459,139	0.53%	F
5BR	$2,807	$497,838	0.56%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 29579 (Myrtle Beach, SC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 29579 is set by HUD for the year 2026. The FMR values for different bedroom sizes are as follows: - 0BR: $1350 - 1BR: $1450 - 2BR: $1730 (26.1% of median income) - 3BR: $2130 - 4BR: $2490 These figures represent the maximum rent that a Section 8 voucher holder can pay. However, comparing these FMRs to actual rents provides insight into the dynamics of the rental market. According to the data provided, the Zillow median price for a 2BR home is $179,517. This translates to a Price-to-FMR ratio of 8.6x, which suggests that property values are significantly higher than what the FMR allows for monthly rent. Given the high property values and the relatively low FMR, there is a significant constraint for voucher holders. They may struggle to find properties where landlords are willing to accept the voucher amount due to the high costs associated with owning and maintaining properties in this area. This could lead to a situation where voucher holders have limited options, potentially resulting in a concentration of Section 8 tenants in lower-cost areas or properties. #### Affordability & Renter Profile ZIP code 29579 has a population of 56,915, with 24.4% of residents being renters. The occupancy rate is 86.3%, indicating a fairly tight rental market. With a median household income of $79,644, the affordability of housing becomes a critical issue for many residents. For instance, a 2BR unit priced at $1730 per month represents 26.1% of the median income, which is a substantial portion but still within reach for some middle-income households. However, the high property values and the relatively low FMR suggest that the market is skewed towards higher-end rentals. This means that while there may be a decent number of renters, they likely fall into two categories: those who can afford higher rents and those who rely on assistance like Section 8 vouchers. The latter group faces significant challenges in finding affordable housing, given the tight market and the disparity between FMR and actual rents. #### Investor Angle From an investor's perspective, the key question is whether the ZIP code offers a positive cash flow at the FMR levels. Given the high property values and the relatively low FMR, it is unlikely that investors would find this ZIP code cash-flow positive. Let's break down the numbers: - A 2BR unit with a median value of $179,517 would typically generate a monthly mortgage payment of around $750-$850, assuming a 20-year fixed-rate mortgage at a 4% interest rate. - Property taxes, insurance, and maintenance costs would add another $200-$300 per month. - This brings the total monthly cost for an investor to approximately $950-$1150, leaving little room for profit at the FMR of $1730. Moreover, the investment grade for this ZIP code is likely to be low due to the tight rental market and the difficulty in finding tenants willing to pay the FMR. The high property values also mean that the initial capital required for investment is substantial, making it less attractive for smaller investors. #### Specific Actionable Insights 1. **Focus on Lower-Cost Units**: Investors should focus on acquiring 0BR and 1BR units, which have FMRs of $1350 and $1450 respectively. These units are more likely to be rented out by voucher holders, providing a more stable income stream despite the lower rent. 2. **Consider Multi-Family Properties**: Multi-family properties might offer better returns compared to single-family homes. By spreading the mortgage payments and other costs across multiple units, investors can achieve a more balanced cash flow. Additionally, multi-family properties often attract a mix of voucher holders and other renters, diversifying the tenant base. 3. **Look for Off-Market Deals**: Given the tight market, investors should consider looking for off-market deals or properties that are not listed publicly. This can help in securing units at a lower purchase price, thereby improving the potential for positive cash flow. #### Bottom Line Based on the provided data, the recommendation for Section 8-focused investors is to **Skip** this ZIP code. The high property values and the relatively low FMR make it challenging to achieve positive cash flow. Moreover, the tight rental market and the limited number of voucher holders relative to the overall population suggest that the demand for Section 8-friendly units is not strong enough to justify the investment. Investors should look for areas with a higher percentage of renters and a closer alignment between FMR and actual rents to ensure a more profitable and sustainable investment.

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.