Location: McCormick County, SC | Metro: Augusta-Richmond County, GA-SC HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
U.S. Census Bureau data (2024)
ZIP 29845, located in McCormick County, SC, can serve as a cash-flow anchor within a Section 8 portfolio strategy. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $920, which is notably higher than the market rent of $850. This creates a positive spread of $70 per unit, ensuring that landlords receive a higher rent payment compared to the local market rates.
The higher FMR relative to market rents means that landlords can secure a steady and reliable cash flow from tenants participating in the Section 8 program. This is particularly advantageous given the lack of data on median home values and appreciation potential, indicating that this ZIP code might not offer significant capital gains opportunities.
Moreover, with a renter share of 10.2%, there is a notable portion of the population who would benefit from the Section 8 program. The median income of $50,673 suggests that many residents qualify for rental assistance, making this ZIP code an attractive option for landlords looking to fill units with stable tenants.
In summary, ZIP 29845 stands out as a cash-flow anchor due to the favorable spread between FMR and market rents, ensuring landlords receive above-market-rate payments. This strategy is especially effective when considering the limited information on appreciation and the presence of a significant number of potential Section 8 participants.
Data Sources: FMR data from HUD (2027). 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.