Location: Chester County, SC | Metro: Charlotte-Concord-Gastonia, NC-SC HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,210 |
| 1 Bedroom | $1,230 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $1,940 |
| 4 Bedrooms | $2,210 |
| 5 Bedrooms | $2,564 |
| 6 Bedrooms | $2,872 |
| 7 Bedrooms | $3,102 |
| 8 Bedrooms | $3,257 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate picture for ZIP code 29712 reveals an interesting investment scenario. Based on the Fair Market Rent (FMR) for a 2-bedroom apartment set at $1230 per month for FY 2024, the annualized rental income would be $14,760. Given the median home value of $302,679, the implied gross yield for a property rented under the Section 8 program would be approximately 4.9%. This is calculated by dividing the annual rental income by the median home value.
However, the market rent figure is not available, making it challenging to provide a direct comparison. The lack of a market rent figure means that we cannot calculate a precise gross yield for a non-Section 8 scenario. Nevertheless, it's important to consider the context of the local real estate market. With a renter density of 9.4%, the competition for rental properties in ZIP 29712 is relatively low, suggesting that landlords might find it easier to secure tenants through the Section 8 program compared to the open market.
The days on market (DOM) figure is also not provided, which is crucial for understanding how quickly properties are typically leased. Without this information, we can only infer that the 4.9% gross yield from Section 8 rentals is likely lower than what could potentially be achieved in a robust market environment. However, the stability and guaranteed payment structure of Section 8 can offset the lower yield for some investors.
In conclusion, while the exact market rent and DOM figures are necessary for a complete analysis, the Section 8 gross yield of 4.9% provides a solid baseline for investment consideration. This yield should be weighed against the risk tolerance and investment goals of individual landlords and small-portfolio investors. The relatively low renter density suggests that securing tenants might be straightforward, especially if they qualify for the Section 8 program, but it also implies a less competitive market for higher rents.
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.