Section 8 Fair Market Rent (FMR) for ZIP 29732 - 2027

Investment Score for ZIP 29732

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	$1,380
1 Bedroom	$1,440
2 Bedrooms	$1,570
3 Bedrooms	$1,920
4 Bedrooms	$2,440
5 Bedrooms	$2,830
6 Bedrooms	$3,170
7 Bedrooms	$3,424
8 Bedrooms	$3,595

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,570	$212,502	0.74%	D
3BR	$1,920	$328,653	0.58%	F
4BR	$2,440	$465,895	0.52%	F
5BR	$2,830	$571,348	0.5%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 29732 (Rock Hill, NC) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 29732 is set by HUD for the year 2026. For a two-bedroom unit, the FMR is $1510 per month. However, it is crucial to understand how this compares to actual rental prices in the area. According to the Zillow median price for a two-bedroom home, the value is $215,530. The price-to-FMR ratio for a two-bedroom unit is 11.9 times, indicating that the actual median rent is likely much higher than the FMR. This suggests that tenants using Section 8 vouchers may face significant constraints in finding affordable housing. For instance, a tenant would need to find a landlord willing to accept a rent of $1510 when the market rate could be substantially higher. #### Affordability & Renter Profile ZIP code 29732 has a population of 57,675, with 27.0% of households being renters. The occupancy rate is quite high at 94.9%, which indicates a tight rental market. Given the median household income of $84,937, the affordability of housing becomes a critical issue. A two-bedroom unit at the FMR of $1510 represents 21.3% of the median income, which is a reasonable percentage. However, the actual market rent, based on the price-to-FMR ratio, would be approximately $17,948 annually ($1510 * 11.9), which is 21.2% of the annual median income. This means that even if a tenant can secure a voucher, they will still have to pay a substantial portion of their income towards rent, making it challenging for lower-income families to afford housing. #### Investor Angle From an investor perspective, the cash flow potential at the FMR level needs to be evaluated. The FMR for a two-bedroom unit is $1510, but the actual median rent is significantly higher at around $17,948 annually. If an investor were to purchase a property at the median price of $215,530 and rent it out at the FMR, they would need to consider the potential for vacancy due to the mismatch between the FMR and the actual market rent. Additionally, the investment grade would depend on factors such as property management costs, maintenance expenses, and the likelihood of securing tenants who can meet the higher market rent. Given the high occupancy rate, there is a strong demand for rentals, but the challenge lies in finding tenants who can afford the higher market rates. #### Specific Actionable Insights 1. **Targeting the Right Property Type**: Investors should focus on properties that are most aligned with the FMR guidelines. For example, a two-bedroom unit at $1510 per month is more likely to attract Section 8 tenants compared to a four-bedroom unit at $2360. The Zillow median price for a two-bedroom unit is $215,530, and at this price point, the property is more likely to generate positive cash flow if rented at the FMR. 2. **Negotiating with Landlords**: Given the high price-to-FMR ratio, landlords might be hesitant to accept Section 8 vouchers. Investors could consider offering incentives to landlords, such as covering a portion of the upfront costs or providing guarantees for timely payments, to make the properties more attractive for Section 8 tenants. 3. **Market Rent vs. FMR**: Investors should be aware that renting at the FMR might result in higher vacancy rates due to the significant gap between the FMR and the actual market rent. They should consider setting rents slightly below the market rate but above the FMR to balance affordability and profitability. For instance, a two-bedroom unit could be rented at $1600 per month, which is still below the market rate but provides a better return on investment than the FMR. #### Bottom Line Given the high price-to-FMR ratio and the tight rental market, ZIP code 29732 presents a challenging environment for Section 8-focused investors. While there is strong demand for rentals, the mismatch between the FMR and actual market rents makes it difficult to secure long-term, stable tenants. Therefore, the recommendation for investors is to **Skip** this ZIP code unless they can find ways to bridge the gap between the FMR and market rents effectively. Alternatively, investors could consider other ZIP codes with a more favorable price-to-FMR ratio and lower market rents relative to the FMR. --- This analysis provides a detailed look into the dynamics of the rental market in ZIP code 29732, focusing specifically on the challenges faced by Section 8 voucher holders and potential investors. It highlights the importance of understanding the local rental market and the implications of the FMR on both tenants and landlords.

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.