Section 8 Fair Market Rent (FMR) for ZIP 29607 - 2027

Investment Score for ZIP 29607

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	$1,600
1 Bedroom	$1,670
2 Bedrooms	$1,820
3 Bedrooms	$2,170
4 Bedrooms	$2,570
5 Bedrooms	$2,981
6 Bedrooms	$3,339
7 Bedrooms	$3,606
8 Bedrooms	$3,786

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
2BR	$1,820	$254,088	0.72%	D
3BR	$2,170	$358,771	0.6%	D
4BR	$2,570	$486,090	0.53%	F
5BR	$2,981	$729,604	0.41%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 29607 (Greenville, SC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 29607, as of 2026, is set at $1610 for a two-bedroom unit. This figure represents 25.9% of the median household income in the area, which stands at $74,503. However, the actual rental market price for a two-bedroom unit is significantly higher, with a Zillow median price of $248,602. This translates to a price-to-FMR ratio of 12.9x, indicating that actual market rents are far above the FMR levels. For voucher holders, this means that finding affordable housing within the parameters of their vouchers can be challenging. The FMR for a two-bedroom unit is only $1610, whereas the average market rent is likely much higher. This discrepancy creates a constraint for voucher holders, who must either find units that are below market rates or negotiate with landlords to accept the voucher amount. #### Affordability & Renter Profile ZIP code 29607 has a high renter population, with 53.6% of residents being renters. The occupancy rate is also quite high at 90.6%, suggesting that the rental market is tight. Given the high percentage of renters and the relatively low vacancy rate, it is clear that there is strong demand for rental properties in this area. However, the affordability of these rentals is questionable. With the median household income at $74,503 and the FMR for a two-bedroom unit at $1610, only about 25.9% of the median income would be allocated towards rent if the FMR were the actual rent paid. In reality, the average market rent is much higher, making it difficult for many residents to afford housing without significant financial strain. Given the high renter percentage and the tight market conditions, it is likely that the majority of renters are young professionals, students, or families who are looking for affordable housing options but are constrained by the high market rents. The FMR levels are not reflective of the actual market conditions, leading to a scenario where many renters are paying well above what is considered fair market value. #### Investor Angle From an investor perspective, the ZIP code 29607 presents a mixed picture when considering cash flow and investment grade. The FMR for a two-bedroom unit is $1610, but the actual market rent is approximately $248,602 based on the Zillow median price. This suggests that the rental market is overpriced relative to the FMR, which could be a challenge for investors seeking to maximize cash flow. To determine whether this ZIP code is cash-flow positive at FMR, we need to consider the typical rental yields in the area. If the actual market rent is $248,602, then the monthly rent would be around $2072, assuming a 12-month lease period. At this rate, the difference between the FMR ($1610) and the actual market rent ($2072) is $462 per month. This gap indicates that landlords who accept Section 8 vouchers will be receiving less than the market rate, potentially impacting their cash flow negatively. The investment grade for this ZIP code would depend on factors such as the cost of acquisition, maintenance costs, and the potential for appreciation. Given the high market prices and the tight rental market, it is possible that property values could continue to rise, making this ZIP code attractive for long-term investments. However, short-term cash flow might suffer due to the lower FMR compared to market rents. #### Specific Actionable Insights 1. **Negotiation Strategy**: Landlords should consider negotiating with voucher holders to find a middle ground between the FMR and market rent. For example, a landlord could offer a slightly reduced rate of $1800 for a two-bedroom unit, which is still above the FMR but below the market rent. This would make the unit more attractive to voucher holders while still providing a reasonable cash flow. 2. **Targeted Marketing**: Investors should focus on marketing their properties to the specific demographic of young professionals and families who are likely to use Section 8 vouchers. Highlighting amenities and features that appeal to these groups can help attract tenants who are willing to pay the FMR. 3. **Property Value Appreciation**: Given the high market prices and tight rental market, investors should expect some level of appreciation in property values over time. This could offset the lower cash flow from accepting Section 8 vouchers. For instance, if an investor purchases a property at the Zillow median price of $248,602, they might see a 5-10% increase in value over the next few years, depending on market trends. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 29607 is to **Hold**. While the cash flow might be lower due to the FMR being significantly below the market rent, the high demand and potential for property value appreciation make it a worthwhile investment. Investors should be prepared to manage the challenges of lower rents but can expect to benefit from the strong rental market in the long term.

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.