Location: Florence, SC | Metro: Florence, 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 | $860 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,010 | $114,638 | 0.88% | C |
| 3BR | $1,300 | $157,959 | 0.82% | C |
U.S. Census Bureau data (2024)
Investors looking at ZIP 29591, located in Scranton, South Carolina, often raise several key concerns regarding the viability of investing in properties for Section 8 tenants. Addressing these points head-on with the available data can provide clarity.
Will Fair Market Rent (FMR) of $910 cover the mortgage on a $138,071 home? The FMR for ZIP 29591 is set at $910 for fiscal year 2024. This amount needs to be compared against the monthly mortgage payment for a property valued at $138,071. Assuming a typical down payment of 20%, the loan amount would be around $110,456.80. With an average interest rate of 4.5% over a 30-year term, the estimated monthly mortgage payment would be approximately $540. This means that the FMR of $910 could indeed cover the mortgage payment, leaving a buffer for maintenance, insurance, and other costs.
Is there enough renter demand at 32.1%? The rental vacancy rate in ZIP 29591 stands at 32.1%. While this figure might seem high, it's important to note that the national average for rental vacancies was around 7% in 2022, according to the U.S. Census Bureau. A higher vacancy rate suggests a softer market, but it also indicates potential for lower competition among landlords. However, the data does not specify the exact number of renters or the proportion interested in Section 8 housing, so we cannot conclusively determine if there is sufficient demand without further investigation into local rental trends and preferences.
Will vouchers keep pace with $699 market rents? The average market rent in ZIP 29591 is $699. Given that the FMR is set above this level, at $910, it appears that vouchers are designed to cover the majority of market rents. However, the data does not provide information on the historical trend of voucher amounts versus market rents or any projected adjustments to voucher payments. Therefore, while current voucher levels seem adequate, future alignment will depend on HUD's adjustments to the FMR based on economic conditions and housing costs in the area.
The data paints a picture of a market where Section 8 rents can potentially cover mortgage costs and are higher than the average market rent. Yet, the demand for rental properties and the long-term sustainability of voucher amounts relative to market rents remain uncertain without additional context on local rental dynamics and future cost-of-living adjustments.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.