Location: Oconee County, SC | Metro: Oconee County, SC
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 | $720 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $990 | $246,455 | 0.4% | F |
| 3BR | $1,210 | $329,252 | 0.37% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering Mountain Rest, SC (ZIP 29664), might raise several concerns regarding the viability of investing in this area through the lens of Section 8 housing. Here are three key objections, along with the data to address them.
Objection 1: Will Fair Market Rent (FMR) of $1,040 for the fiscal year 2026 cover the mortgage on a home priced at $260,771?
The FMR figure represents the maximum amount that a landlord can receive from a voucher holder for a unit. To assess whether it will cover the mortgage, we must consider the typical mortgage rate and term. Assuming a 30-year fixed-rate mortgage at an average interest rate of 4%, the monthly payment on a $260,771 home would be approximately $1,250. This means that the FMR of $1,040 would not fully cover the mortgage payment. However, it's important to note that landlords often receive a combination of the tenant's contribution and the voucher subsidy, which together should equal the FMR. Additionally, property taxes and insurance costs must also be factored into the total expenses.
Objection 2: Is there enough renter demand at 19.5%?
The 19.5% rental rate suggests that nearly one-fifth of the housing units in Mountain Rest are rented out. While this percentage is not exceptionally high, it does indicate a presence of renters in the market. However, the data alone does not provide a complete picture of the demand for Section 8 housing specifically. To get a clearer understanding, further research into the local Section 8 program participation rates and waitlists would be necessary. The 19.5% rental rate, however, does suggest that there is a general willingness among residents to rent, which could translate into interest in Section 8 properties if they are affordable and well-maintained.
Objection 3: Will vouchers keep pace with market rents of $798?
The FMR of $1,040 is higher than the current market rent of $798, indicating that vouchers should be sufficient to cover the cost of renting in Mountain Rest. However, the concern remains about whether future increases in market rents will be matched by corresponding increases in the FMR. The data does not provide projections for future market rents or FMR adjustments, so this question cannot be definitively answered with the given information. It's advisable to monitor local housing trends and HUD announcements for any changes that might affect the balance between market rents and voucher subsidies.
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.