Location: Hampton County, SC | Metro: Allendale County, SC
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 | $650 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $900 |
| 3 Bedrooms | $1,120 |
| 4 Bedrooms | $1,280 |
| 5 Bedrooms | $1,485 |
| 6 Bedrooms | $1,663 |
| 7 Bedrooms | $1,796 |
| 8 Bedrooms | $1,886 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,120 | $73,075 | 1.53% | A+ |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 29827 reveals a significant difference between the federally mandated Fair Market Rent (FMR) and the actual market rental rates, impacting the gross yield for potential investments.
The Federal Housing Authority sets the FMR for a two-bedroom apartment at $920 per month for fiscal year 2026. This figure annualizes to $11,040, providing a higher gross yield compared to the market rent. The market rent, based on Census ACS data, stands at $660 per month, equating to an annual rental income of $7,920. When these figures are applied to the median home value of $86,384 in ZIP 29827, the gross yields are calculated as follows:
Given the 44.9% renter density in ZIP 29827, it's important to consider the likelihood of securing tenants willing to pay the higher FMR rate. However, the absence of data on the number of days on market (DOM) makes it difficult to assess the current demand dynamics accurately.
The FMR scenario suggests a potentially attractive investment opportunity, with a gross yield nearly four percentage points higher than the market rent scenario. Yet, landlords and small-portfolio investors must weigh this against the practical challenges of renting properties at government-set rates rather than market rates. While the FMR offers a better gross yield, the market rent scenario provides a more grounded perspective based on current tenant affordability and willingness to pay.
In conclusion, while the FMR scenario presents a more favorable gross yield, the market rent scenario reflects a more realistic rental environment. Investors should conduct thorough due diligence, considering the local rental market conditions and tenant demographics, before making investment decisions in ZIP 29827.
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.