Section 8 Fair Market Rent (FMR) for ZIP 29605 - 2027

Investment Score for ZIP 29605

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	$1,190
1 Bedroom	$1,240
2 Bedrooms	$1,350
3 Bedrooms	$1,610
4 Bedrooms	$1,900
5 Bedrooms	$2,204
6 Bedrooms	$2,468
7 Bedrooms	$2,665
8 Bedrooms	$2,798

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,240	$210,664	0.59%	F
2BR	$1,350	$230,473	0.59%	F
3BR	$1,610	$277,578	0.58%	F
4BR	$1,900	$385,948	0.49%	F
5BR	$2,204	$743,195	0.3%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 29605 (Greenville, SC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 29605 in Greenville, SC, is set by HUD for 2026. For a two-bedroom unit, the FMR is $1210 per month. However, the actual rental market is significantly higher. According to Zillow, the median price for a two-bedroom home in this area is $224,278, which translates to a monthly rent of approximately $1,550 based on typical mortgage calculations (assuming a 4.5% interest rate and a 20% down payment). This means that the actual rent is about 15.4 times the FMR for a two-bedroom unit, indicating a substantial gap between what vouchers can cover and the actual cost of renting. This gap creates significant constraints for voucher holders. The $1210 FMR is only 22.1% of the median household income ($65,648), meaning that even if a voucher holder finds a property within the FMR range, they would still need to pay a considerable portion of their income towards rent. Additionally, landlords may be hesitant to accept vouchers due to the lower rent compared to market rates, leading to limited options for voucher holders. #### Affordability & Renter Profile ZIP code 29605 has a population of 40,717, with 31.1% being renters. The occupancy rate is high at 93.0%, suggesting a tight rental market where demand exceeds supply. Given the median household income of $65,648, the average renter in this area likely earns close to this figure. However, the actual rental costs are quite high, making it challenging for many renters to find affordable housing. The median household income indicates that the majority of residents have relatively modest incomes, yet the rental prices are far above what most can afford comfortably. With the FMR for a two-bedroom unit being only $1210, but the actual median rent being around $1,550, affordability is a major concern. This suggests that the market is undersupplied with affordable units, particularly those that fall within the FMR range. #### Investor Angle From an investor’s perspective, the ZIP code 29605 presents both opportunities and challenges. The actual median rent for a two-bedroom unit is $1,550, while the FMR is $1210. If an investor were to purchase a two-bedroom home at the median price of $224,278, the monthly mortgage payment would be approximately $1,550, assuming a 4.5% interest rate and a 20% down payment. This means that the investor would break even if they could charge the actual median rent, but they would lose money if they had to accept the FMR. Given these figures, the ZIP code is not cash-flow positive at the FMR level for a two-bedroom unit. However, if the investor can secure tenants willing to pay the market rate, the investment could be profitable. The high occupancy rate and strong demand indicate that there is potential for steady rental income, but the reliance on market rates rather than FMRs makes the investment riskier. The investment grade for this ZIP code is moderate to low for Section 8-focused investors. While there is a robust rental market, the mismatch between FMR and actual rents makes it difficult to rely solely on Section 8 vouchers for profitability. #### Specific Actionable Insights 1. **Target Market-Rate Tenants**: Given the high price-to-FMR ratio, investors should focus on attracting market-rate tenants rather than relying on Section 8 vouchers. By doing so, they can achieve a better cash flow and potentially higher returns on investment. For example, a two-bedroom unit priced at $1,550 per month would align with the market median, ensuring a steady stream of income. 2. **Develop Affordable Units**: Investors looking to cater specifically to the needs of voucher holders should consider developing or renovating properties to fit within the FMR range. A two-bedroom unit priced at $1210 would be attractive to voucher holders and could help fill the gap in the local rental market. This strategy would require careful financial planning to ensure profitability despite the lower rent. #### Bottom Line For Section 8-focused investors, the recommendation is to **Skip** this ZIP code. The high price-to-FMR ratio and the limited number of units within the FMR range make it challenging to achieve positive cash flow. Instead, investors should look for areas where the FMR is closer to the actual rental market rates, or they should consider targeting market-rate tenants in this ZIP code to ensure profitability. However, for investors willing to develop affordable housing units, there is potential to meet a significant need in the market. These units should be priced at or below the FMR to attract voucher holders, but such investments would require a different approach to ensure financial viability.

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.