Location: Cherokee County, SC | Metro: Charlotte-Concord-Gastonia, NC-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 | $890 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,260 | $233,689 | 0.54% | F |
U.S. Census Bureau data (2024)
When considering whether to purchase a property in ZIP code 29702 for Section 8 investment, follow this decision tree based on the provided data:
Step 1: Evaluate if the Fair Market Rent (FMR) of $940 can cover the debt service on a property valued at $160,068. To make this determination, calculate the monthly mortgage payment, including principal, interest, taxes, and insurance. If the total debt service is less than or equal to $940, proceed to Step 2. Otherwise, the answer is No.
Step 2: Compare the market rent of $721 (as per Census ACS) against the FMR. If the market rent is above $940, it suggests that the area may be overvalued for Section 8 purposes, leading to a No. If the market rent is at or slightly below $940, it indicates that the property could be profitable under Section 8, moving you to Step 3.
Step 3: Assess the rental demand in the area. With 24.4% of the population being renters and an unknown number of days on the market (DOM), the viability of the investment hinges on these factors. If the rental demand is robust, with a low DOM indicating quick leasing, then the answer is Yes. However, if the DOM is high, suggesting difficulty in leasing properties, the answer shifts to It Depends, as other factors such as property condition, location within the zip code, and local economic conditions will play a significant role.
To summarize, if the FMR of $940 covers the debt service, and the market rent is at or below $940, the primary factor becomes the rental demand. A strong rental market, indicated by a low DOM, supports a Yes decision. Conversely, a weak rental market with a high DOM means the decision to invest in ZIP 29702 for Section 8 purposes is less clear, thus It Depends.
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.