Section 8 Fair Market Rent (FMR) for ZIP 29803 - 2027

Investment Score for ZIP 29803

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	$1,010
1 Bedroom	$1,210
2 Bedrooms	$1,340
3 Bedrooms	$1,690
4 Bedrooms	$2,050
5 Bedrooms	$2,378
6 Bedrooms	$2,663
7 Bedrooms	$2,876
8 Bedrooms	$3,020

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	$1,340	$211,269	0.63%	D
3BR	$1,690	$329,650	0.51%	F
4BR	$2,050	$425,143	0.48%	F
5BR	$2,378	$493,745	0.48%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 29803 (Aiken, GA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 29803, as of 2026, indicate that a two-bedroom unit should rent for $1310. However, the Zillow median price for a two-bedroom home in this area is $208,585, which translates to a price-to-FMR ratio of 13.3x. This suggests that the actual rental prices in the market are significantly higher than what the FMR stipulates. For instance, a typical two-bedroom unit could be priced around $17,000 annually based on the Zillow median, whereas the FMR would only cover $1310 per month, or $15,720 annually. This discrepancy places a significant constraint on voucher holders. They might struggle to find units that fall within their budget, especially if landlords are aware of the high market rates and prefer non-voucher tenants who can pay more. The FMR for a three-bedroom unit is $1690, and for a four-bedroom unit, it’s $2060, but these figures are still lower than what the market typically demands. Consequently, voucher holders may face challenges in securing housing that meets their needs, particularly if they require larger units. #### Affordability & Renter Profile ZIP code 29803 has a population of 40,699, with 17.7% of residents being renters. The occupancy rate stands at 91.9%, indicating a relatively tight rental market where most available units are occupied. Given the median household income of $86,023, the rental market appears to be moderately affordable for the average resident. However, the 2BR FMR represents only 18.3% of the median income, which means that even without vouchers, renting a two-bedroom unit is relatively affordable for most households. Despite this, the high price-to-FMR ratio suggests that there is a significant gap between the actual rental prices and the FMR. This makes it challenging for low-income individuals to afford housing, even with vouchers. The market dynamics favor those who can pay above the FMR, potentially leaving voucher holders with limited options. #### Investor Angle From an investor perspective, the ZIP code 29803 presents a mixed picture. The actual rental prices are much higher than the FMR, which could make it difficult for investors to generate cash flow solely from Section 8 vouchers. For example, a two-bedroom unit priced at $17,000 annually would yield only $15,720 from a Section 8 voucher holder, resulting in a shortfall of $1,280 annually. This shortfall could be significant, especially when considering property management costs, maintenance expenses, and other financial obligations. However, the high occupancy rate of 91.9% indicates strong demand for rental properties, which could benefit investors who are willing to accept Section 8 vouchers. The key challenge lies in balancing the need for higher rental income with the availability of voucher holders. Investors should consider the potential for non-voucher tenants who can pay the market rate, as well as the possibility of negotiating higher rents with voucher holders. Given the data, the investment grade for this ZIP code would be moderate. While there is strong demand, the affordability issues for voucher holders and the high market prices suggest that investors should proceed with caution. Diversifying their tenant base and understanding local rental trends will be crucial for success. #### Specific Actionable Insights 1. **Target Larger Units**: Since the FMR for larger units (3BR and 4BR) is closer to the median income, investors should focus on developing or acquiring larger units. For example, a three-bedroom unit at $1690 per month is more likely to attract voucher holders, and a four-bedroom unit at $2060 per month could be competitive in the broader rental market. This strategy leverages the higher FMR for larger units while also catering to families who may need more space. 2. **Negotiate with Landlords**: Given the high price-to-FMR ratio, investors should consider negotiating with landlords to secure units at prices closer to the FMR. This could involve offering incentives such as long-term leases or guarantees of timely payments. By doing so, they can ensure that their properties remain accessible to voucher holders while still generating sufficient cash flow. 3. **Diversify Tenant Base**: To mitigate the risk of relying solely on Section 8 vouchers, investors should aim to diversify their tenant base. This includes attracting non-voucher tenants who can pay the market rate. By having a mix of voucher and non-voucher tenants, investors can balance their cash flow and reduce dependency on government subsidies. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 29803 is to **Hold**. While the market offers strong demand and potential for cash flow, the high price-to-FMR ratio poses significant challenges. Investors should carefully evaluate their ability to manage properties with a diverse tenant base and consider targeting larger units where the FMR is more aligned with the median income. This approach can help maximize returns while ensuring accessibility for voucher holders.

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.