Section 8 Fair Market Rent (FMR) for ZIP 29639 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 29639

• HOUSING AUTHORITY OF ABBEVILLE (Abbeville, SC)

To determine if a landlord should buy in ZIP code 29639 for Section 8 purposes, follow these steps:

Step 1: Evaluate if the Fair Market Rent (FMR) of $950 clears debt service on a property valued at $277,956.

• If yes, proceed to Step 2. A property priced at $277,956 would typically require a monthly mortgage payment that the FMR must cover. Given the FMR of $950, landlords need to ensure that their debt service does not exceed this amount to make the investment viable under Section 8 guidelines.
• If no, do not invest. The FMR is insufficient to cover the mortgage payments, making it unprofitable for landlords to participate in the Section 8 program for properties at this price point.

Step 2: Assess if the market rent of $1,068 is above, at, or below the FMR.

• If the market rent is above the FMR, consider other factors. This indicates that landlords can potentially charge more than the FMR but must still adhere to the program's limits.
• If the market rent is at or below the FMR, proceed to Step 3. This means the market rent aligns well with the FMR, allowing landlords to charge the FMR without exceeding market rates.

Step 3: Determine if there is sufficient demand, given that 28.8% of residents are renters and the days on market (DOM) is not available.

• Yes, if the percentage of renters is high enough and you can find evidence of strong rental demand through other sources such as occupancy rates or rental vacancy rates.
• No, if the lack of data on DOM and other indicators suggests weak demand. Landlords need to be certain that there will be enough tenants willing to pay the FMR to justify the investment.
• It depends, if the percentage of renters is moderate and you need additional information on the local rental market conditions to make a final decision.

The decision to invest in ZIP 29639 for Section 8 properties hinges on these three criteria. Landlords must ensure that the FMR covers their debt service, that the market rent is reasonable compared to the FMR, and that there is sufficient tenant demand. Without concrete data on DOM, landlords must rely on other indicators to gauge demand accurately.

Data Sources: FMR data from HUD (2027). 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.