Section 8 Fair Market Rent (FMR) for ZIP 29621 - 2027

Investment Score for ZIP 29621

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	$1,030
1 Bedroom	$1,070
2 Bedrooms	$1,170
3 Bedrooms	$1,530
4 Bedrooms	$1,810
5 Bedrooms	$2,100
6 Bedrooms	$2,352
7 Bedrooms	$2,540
8 Bedrooms	$2,667

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
2BR	$1,170	$193,167	0.61%	D
3BR	$1,530	$301,567	0.51%	F
4BR	$1,810	$429,401	0.42%	F
5BR	$2,100	$554,940	0.38%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 29621 (Anderson, SC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 29621 in Anderson, SC, are as follows for 2026: - 0BR: $1080 - 1BR: $1090 - 2BR: $1240 (which is 20.0% of the median household income) - 3BR: $1610 - 4BR: $1950 These FMRs represent the maximum rent that a Section 8 voucher holder can pay. However, it's important to understand how these figures compare to actual rental prices in the area. The Zillow median price for a 2BR home in this ZIP code is $188,142, which translates into a price-to-FMR ratio of 12.6x. This suggests that the actual rental market prices are significantly higher than the FMRs. For instance, a 2BR unit priced at $188,142 would likely have a monthly rent far above the $1240 FMR. Given the disparity between FMR and actual rents, voucher holders face significant constraints. They must find units that do not exceed their voucher limits, which can be challenging in a market where prices are substantially higher. This often means that voucher holders are limited to older, less desirable properties or those located in areas with lower demand. #### Affordability & Renter Profile ZIP code 29621 has a population of 46,482, with 26.5% of residents being renters. The occupancy rate stands at 93.1%, indicating a relatively tight market where most available housing is occupied. The median household income is $74,256, and the FMR for a 2BR unit represents only 20.0% of this income. This implies that the average resident can afford to pay more than the FMR for a 2BR unit, suggesting that the rental market is generally not affordable for low-income households without assistance. The tight occupancy rate and the high percentage of renters indicate a competitive market. With only 6.9% of units potentially vacant, landlords have the upper hand in setting rental prices. This makes it difficult for voucher holders to secure housing, as they are competing against other renters who can pay more than the FMR. #### Investor Angle From an investor's perspective, the ZIP code 29621 offers a mixed picture when considering cash flow and investment grade based on FMRs. Given the high price-to-FMR ratio of 12.6x, it's clear that the actual rental market is much more expensive than what the FMRs suggest. This means that if an investor were to purchase a property at the median price of $188,142 and rent it out as a 2BR unit, they would need to charge a monthly rent well above the $1240 FMR to cover mortgage payments, maintenance costs, and other expenses. However, the tight market and high occupancy rate could still make this ZIP code attractive for investors willing to accept FMR-based rents. If an investor can acquire a property below the median price or in a less desirable location, they might still achieve positive cash flow while renting to voucher holders. The key challenge is finding properties that can be rented at or near the FMR without significant vacancy periods. #### Specific Actionable Insights 1. **Focus on Lower-Rent Properties**: Investors should target properties that are likely to be rented at or near the FMR. This includes older homes or units in areas with lower demand. For example, a 2BR unit priced at around $1240 per month would be ideal for voucher holders and could provide steady, albeit modest, cash flow. 2. **Consider Multi-Family Units**: Given the higher FMRs for larger units, multi-family buildings could offer better opportunities. A 3BR or 4BR unit could be split into multiple smaller units, each rented at the FMR for its size. For instance, a 4BR unit could be divided into two 2BR units, each rented at $1240, providing a combined rent of $2480, which is closer to the actual market rates. 3. **Negotiate with Landlords**: Since the actual rental market is much higher than the FMR, negotiating with landlords to accept lower rents could be crucial. Offering long-term leases or other incentives might help secure agreements to rent at FMR levels. #### Bottom Line For Section 8-focused investors, ZIP code 29621 presents a challenging but potentially rewarding market. The high price-to-FMR ratio indicates that the actual rental market is not aligned with FMRs, making it difficult to find properties that can be rented at FMR levels without significant vacancy risk. However, the tight occupancy rate and high demand for rental housing suggest that there is a strong market presence for renters, including those with vouchers. **Recommendation**: **Hold** While the market is not ideal for new investments due to the high price-to-FMR ratio, holding existing properties that are already rented to voucher holders could still be profitable. Investors should focus on maintaining occupancy and ensuring that their properties remain desirable to voucher holders by keeping them in good condition and offering amenities that appeal to this demographic. Additionally, exploring opportunities to convert larger units into multiple smaller ones could help align rental income more closely with market rates while still benefiting from the stability of Section 8 vouchers.

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.