Section 8 Fair Market Rent (FMR) for ZIP 29730 - 2027

Investment Score for ZIP 29730

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,360
1 Bedroom	$1,410
2 Bedrooms	$1,540
3 Bedrooms	$1,880
4 Bedrooms	$2,390
5 Bedrooms	$2,772
6 Bedrooms	$3,105
7 Bedrooms	$3,353
8 Bedrooms	$3,521

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,540	$206,359	0.75%	D
3BR	$1,880	$312,346	0.6%	D
4BR	$2,390	$428,288	0.56%	F
5BR	$2,772	$504,228	0.55%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 29730 (Rock Hill, SC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 29730, as determined by HUD for 2026, is set at $1510 for a two-bedroom unit. This FMR is intended to reflect the average rent that voucher holders can expect to pay for a modest-quality rental unit. However, it is important to note that the actual rents in the area may differ significantly from these figures. The Zillow median price for a two-bedroom home in Rock Hill is $203,674, which translates to a monthly mortgage payment of approximately $940 based on a 30-year fixed-rate mortgage at 5%. When factoring in property taxes, insurance, and maintenance costs, the total monthly cost for a landlord could be around $1200-$1300, which is slightly below the FMR but still relatively close. HUD’s FMRs serve as a cap for how much a voucher holder can pay towards rent, meaning landlords must adhere to these rates to receive full reimbursement. For a two-bedroom unit, the maximum allowable rent under the voucher program would be $1510. This creates a constraint for voucher holders, who may find it challenging to secure housing in a market where the median price for homes is significantly higher. #### Affordability & Renter Profile With a population of 58,199, Rock Hill has a substantial number of renters, accounting for 39.7% of the total households. The median household income is $68,543, which suggests that the majority of residents have stable employment and financial situations. However, the affordability of housing is a critical issue, especially for those relying on Section 8 vouchers. The occupancy rate of 91.7% indicates that there is a high demand for housing in the area, suggesting that the market is relatively tight. This tightness means that landlords have some leverage in setting rental prices, which could potentially push rents above the FMR levels. Given that the FMR for a two-bedroom unit is only 26.4% of the median income, it is clear that many residents can afford to pay more than the FMR, making it a challenge for voucher holders to find suitable accommodation. #### Investor Angle From an investor perspective, the key question is whether the FMR levels allow for positive cash flow. Based on the data, the FMR for a two-bedroom unit is $1510. If we assume a typical mortgage payment of $940, plus an additional $260 for property taxes, $100 for insurance, and $200 for maintenance, the total monthly expenses would be around $1500. This leaves very little room for profit, indicating that the market is marginally cash-flow positive at best. The investment grade for this ZIP code would likely be considered moderate to low. While the demand for housing is strong, the tight margins between the FMR and the actual costs of ownership make it less attractive for investors seeking significant returns. Additionally, the high price-to-FMR ratio of 11.2x suggests that the value of properties in this area is significantly higher than what voucher holders can afford, which could limit the pool of potential tenants. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider focusing on smaller units such as one-bedroom apartments. The FMR for a one-bedroom unit is $1380, which is still relatively close to the total monthly expenses of owning a property. This could provide a better chance for positive cash flow while still catering to the needs of voucher holders. 2. **Seek Out Subsidized Programs**: Investors might want to explore other subsidized programs beyond just Section 8. There are often local initiatives or partnerships with government agencies that can provide additional support or incentives for landlords who agree to rent to low-income families. These programs can help offset the lower rents and improve overall profitability. 3. **Consider Multi-Family Properties**: Multi-family properties can offer economies of scale that single-family homes cannot. By investing in a multi-family complex, landlords can spread their costs across multiple units, potentially increasing the likelihood of positive cash flow even if individual rents are capped at FMR levels. #### Bottom Line For investors focused specifically on Section 8 vouchers, the recommendation for ZIP code 29730 would be to **skip** this market. The high price-to-FMR ratio and tight margins make it difficult to achieve positive cash flow, and the strong demand for housing means that competition for tenants willing to pay the FMR is fierce. Instead, investors might want to look into areas with lower ratios or consider diversifying their portfolio to include other types of subsidized housing programs that offer more favorable terms. However, for investors willing to explore broader opportunities in the rental market, Rock Hill presents a moderately attractive opportunity due to its high occupancy rate and substantial renter population. The focus should be on smaller units and leveraging additional subsidies to ensure profitability.

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.