Location: Lancaster County, SC | Metro: Lancaster County, 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 | $1,410 |
| 1 Bedroom | $1,470 |
| 2 Bedrooms | $1,600 |
| 3 Bedrooms | $2,190 |
| 4 Bedrooms | $2,670 |
| 5 Bedrooms | $3,097 |
| 6 Bedrooms | $3,469 |
| 7 Bedrooms | $3,747 |
| 8 Bedrooms | $3,934 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,600 | $377,654 | 0.42% | F |
| 3BR | $2,190 | $438,013 | 0.5% | F |
| 4BR | $2,670 | $584,904 | 0.46% | F |
| 5BR | $3,097 | $738,847 | 0.42% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 29707, which covers Fort Mill, SC, and part of Lancaster County, operate under specific guidelines that directly impact landlords and small-portfolio investors. For fiscal year 2024, the SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment in this ZIP code is set at $1,540. This figure is crucial because it represents the maximum amount that the federal government will reimburse landlords for renting out a two-bedroom unit to tenants participating in the Section 8 Housing Choice Voucher program.
In contrast, the local market rent for a similar unit, as measured by ZORI (Zillow Observed Rent Index), stands at $1,763. This difference highlights the financial considerations landlords must weigh when deciding whether to accept Section 8 vouchers.
A voucher payment consists of two parts: the subsidy from the government and the tenant's contribution. The tenant is generally expected to pay 30% of their adjusted income towards rent. If we assume an average adjusted income of $1,000 per month for simplicity, the tenant would contribute approximately $300 towards the rent. However, the actual amount can vary based on the individual tenant's income level.
Beyond the base rent, there are also utility allowances that landlords should consider. These allowances cover certain utilities and can vary but typically add a few hundred dollars to the total reimbursement. Assuming an additional $150 for utilities, the total reimbursement a landlord might receive for a two-bedroom unit would be around $1,990 ($1,540 + $300 + $150).
Given that the local market rent is $1,763, the typical reimbursement for a two-bedroom unit under Section 8 would result in a surplus for the landlord. Specifically, the surplus would be about $227 per month, calculated as the difference between the total reimbursement ($1,990) and the local market rent ($1,763).
This surplus provides landlords with a buffer that can help offset the administrative costs associated with participating in the Section 8 program. It also offers a competitive advantage, ensuring that landlords in ZIP 29707 can maintain their rental properties without facing a shortfall compared to the prevailing market rates.
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.