Location: Abbeville 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 | $1,050 |
| 1 Bedroom | $1,100 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,210 | $161,570 | 0.75% | D |
| 3BR | $1,460 | $278,351 | 0.52% | F |
| 4BR | $1,750 | $440,941 | 0.4% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 29627, located in Belton, SC, revolves around the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for the area, set at $980 for fiscal year 2024, stands $43 above the reported market rent of $937, based on Census ACS data. This represents a 4.6% premium that landlords can potentially capture by participating in the Section 8 program.
In Belton, where 22.0% of residents are renters, the median home value is $261,218 and the median income is $59,167. These economic indicators suggest a community where a significant portion of the population relies on rental housing, and many may require assistance through housing vouchers to meet their living expenses.
The gap between FMR and market rent makes this a yield play for landlords. By accepting voucher tenants, landlords can command rents closer to the FMR of $980 rather than the lower market rate of $937. This is particularly advantageous given the relatively high median home value and the median income levels, which indicate a mix of economic conditions where some residents can afford higher rents while others need substantial subsidies.
However, it's important to note that participating in the Section 8 program also comes with certain responsibilities and potential costs. Landlords must ensure that their properties meet Housing Quality Standards (HQS), which can necessitate renovations or maintenance that might not be required for open-market rentals. Additionally, there could be administrative burdens associated with the program that landlords should factor into their decision-making process.
In summary, the premium of $43 or 4.6% between the FMR and market rent in ZIP 29627 presents an opportunity for landlords to increase their rental yields by accepting Section 8 voucher holders. This strategy aligns well with the local economic context, providing affordable housing options to those who need them while offering a financial benefit to property owners.
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.