Location: McCormick County, SC | Metro: Anderson, 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 | $920 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,060 | $161,137 | 0.66% | D |
| 3BR | $1,370 | $241,137 | 0.57% | F |
| 4BR | $1,670 | $343,899 | 0.49% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 29620 (Abbeville, SC) might have several concerns regarding the feasibility of investing in rental properties through the Section 8 program. Let's address these concerns head-on using the available data.
Objection 1: Will Fair Market Rent (FMR) of $1040 cover the mortgage on a $211,864 home?
The Fair Market Rent (FMR) for a one-bedroom unit in ZIP 29620 is set at $1040 for fiscal year 2024. This figure represents the maximum amount that a landlord can charge for rent under the Section 8 program. To determine if this covers the mortgage, we need to calculate the monthly mortgage payment on a $211,864 home. Assuming a 30-year fixed-rate mortgage at an average interest rate of 5%, the monthly mortgage payment would be approximately $1125. Thus, the FMR does not fully cover the mortgage payment, leaving a shortfall of $75 per month.
Objection 2: Is there enough renter demand at 24.1%?
The rental vacancy rate in ZIP 29620 stands at 24.1%. This high rate suggests that there is significant competition among landlords to attract tenants, which could indicate low renter demand. However, it's important to consider the local context. A high vacancy rate can also mean that there are ample opportunities for new investors to enter the market and capture a share of the existing rental pool. While 24.1% is indeed high, it doesn't necessarily mean that demand is insufficient; rather, it suggests that supply exceeds demand, possibly due to economic factors or seasonal fluctuations.
Objection 3: Will vouchers keep pace with $595 market rents?
The average market rent for a one-bedroom apartment in ZIP 29620 is $595. The question here is whether the voucher amounts will match or exceed this figure. According to the data, the FMR is higher than the average market rent, suggesting that vouchers should generally keep pace with market rents. However, the actual amount a tenant receives can vary based on their income and family size, so landlords might not always receive the full FMR. It's crucial for investors to understand the nuances of how voucher amounts are determined and to prepare for potential discrepancies between the FMR and the actual voucher payments received.
In conclusion, while the data provides insights into the challenges of investing in ZIP 29620 through the Section 8 program, it also highlights opportunities. The FMR does not fully cover the mortgage on a $211,864 home, but the difference is relatively small. The high rental vacancy rate indicates strong competition but also potential for market entry. Lastly, vouchers are likely to keep pace with market rents, although individual payment amounts can vary. These points should be carefully considered before making an investment decision.
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.