Section 8 Fair Market Rent (FMR) for ZIP 29588 - 2027

Investment Score for ZIP 29588

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	$1,180
1 Bedroom	$1,290
2 Bedrooms	$1,540
3 Bedrooms	$1,870
4 Bedrooms	$2,030
5 Bedrooms	$2,355
6 Bedrooms	$2,638
7 Bedrooms	$2,849
8 Bedrooms	$2,991

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	$1,290	$104,406	1.24%	A
2BR	$1,540	$195,726	0.79%	D
3BR	$1,870	$313,537	0.6%	F
4BR	$2,030	$395,142	0.51%	F
5BR	$2,355	$440,515	0.53%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 29588 (Myrtle Beach, SC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 29588, Myrtle Beach, SC, indicate that the rental market is quite competitive. For a two-bedroom unit, the FMR is set at $1520 per month. However, the Zillow median price for a two-bedroom home is $193,269, which translates to a price-to-FMR ratio of 10.6x. This suggests that the actual rent prices are significantly higher than the FMR, creating a challenge for tenants using Section 8 vouchers. The voucher holders are constrained by the maximum allowable rent, which is often lower than what landlords charge in this area. Specifically, for a three-bedroom unit, the FMR is $1870, and for a four-bedroom unit, it is $2190. These figures represent 26.4% and 31.0% of the median household income of $70,739, respectively, indicating that even the higher-end units are relatively affordable compared to local incomes. #### Affordability & Renter Profile The population of ZIP 29588 is 52,609, with 22.2% of residents being renters. Given the occupancy rate of 90.7%, this indicates a robust demand for rental properties, suggesting that the market is neither oversupplied nor under-supplied but rather balanced. The median household income of $70,739 provides insight into the economic profile of the area. With 25.8% of the median income allocated to a two-bedroom unit, the typical renter would be someone who earns around the median income or slightly above. This group likely includes families, young professionals, and retirees who are seeking affordable housing options in a popular vacation destination. The high occupancy rate also implies that there is a strong need for rental properties, making it a desirable location for both tenants and investors. #### Investor Angle From an investor’s perspective, the ZIP code 29588 presents a mixed picture. The FMR for a two-bedroom unit is $1520, which is significantly lower than the market rent prices. This means that while landlords can potentially charge higher rents, they must consider the limitations imposed by Section 8 vouchers. To determine if the ZIP is cash-flow positive at FMR, we need to look at the potential rental income versus the cost of acquisition and maintenance. Given the Zillow median price of $193,269 for a two-bedroom property, the monthly mortgage payment on a 30-year fixed-rate loan at 4.5% interest would be approximately $950. Adding typical maintenance costs of about $150 per month, the total monthly expenses would be around $1100. At an FMR of $1520, this leaves a positive cash flow of $420 per month before taxes and other considerations. However, the investment grade for this ZIP code is moderate due to the high competition between market rates and FMR. While the positive cash flow is attractive, the significant gap between FMR and market rates means that landlords may struggle to find enough Section 8 tenants willing to pay the FMR. Additionally, the high occupancy rate suggests that there might be limited opportunities for new rentals to enter the market without facing stiff competition. #### Specific Actionable Insights 1. **Focus on Multi-Bedroom Units**: Given the higher FMR for multi-bedroom units ($1870 for 3BR and $2190 for 4BR), investors should consider acquiring properties with three or four bedrooms. These units are more likely to attract families and larger groups, who typically have higher earning potentials and are more likely to qualify for Section 8 vouchers. 2. **Consider Off-Market Properties**: Since the market is tight and competition is high, investors should explore off-market properties such as foreclosures, short sales, or properties directly from owners. This strategy can help secure properties at a lower price point, improving the overall investment grade. 3. **Enhance Property Value**: Investors should focus on enhancing the value of their properties through renovations and upgrades. This can make the units more attractive to tenants and potentially increase the number of applicants, thereby increasing the chances of finding qualified Section 8 tenants. #### Bottom Line For Section 8-focused investors, ZIP code 29588 offers a moderately positive investment opportunity. The high occupancy rate and strong demand for rental properties suggest a stable market, but the significant gap between FMR and market rates poses challenges. Therefore, the recommendation is to **Hold** investments in this ZIP code, focusing on properties with three or four bedrooms and considering strategic enhancements to improve tenant attraction. While the cash flow at FMR is positive, the limited pool of Section 8 tenants and the competitive market environment make it a cautious choice.

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.