Location: Chester 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 | $1,170 |
| 1 Bedroom | $1,220 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,670 |
| 4 Bedrooms | $2,080 |
| 5 Bedrooms | $2,413 |
| 6 Bedrooms | $2,703 |
| 7 Bedrooms | $2,919 |
| 8 Bedrooms | $3,065 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,670 | $327,651 | 0.51% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 29742 reveals a balanced opportunity for landlords and small-portfolio investors, neither purely high-yield nor low-stability, but a mix that offers both reasonable returns and moderate risk.
Starting with yield, the Fair Market Rent (FMR) for ZIP 29742 in fiscal year 2024 is set at $1230. This figure is notably higher than the market rent of $1,097, indicating a potential for slightly above-average rental income. However, the median home value stands at $259,551, which suggests a significant upfront investment relative to the expected rental income. The FMR being above the market rent implies a favorable environment for Section 8 housing, where subsidies can cover a substantial portion of the rent, making it attractive for landlords who are willing to accept government-subsidized tenants.
Moving on to stability, the ZIP code has 17.5% of its residents as renters, which is relatively low and indicates a primarily owner-occupied neighborhood. This percentage suggests a community with fewer transient residents, potentially leading to longer-term leases and lower vacancy rates. Unfortunately, the data does not provide the number of days on market (DOM) for rentals, which would have been useful for assessing how quickly properties can be leased. The median household income in the area is $52,775, offering some assurance regarding the financial stability of potential tenants, though it is not exceptionally high.
In summary, ZIP 29742 presents a scenario where the yield is moderately high due to the subsidy gap between the FMR and market rent, yet the stability is also present due to the lower percentage of renters and moderate income levels. This makes it a suitable location for those seeking a steady cash flow rather than a high-risk, high-reward flipping strategy. The combination of these factors points towards a middle-ground investment, providing reliable returns without the volatility often associated with high-yield markets.
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.