Location: Hampton County, SC | Metro: Hampton 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 | $640 |
| 1 Bedroom | $680 |
| 2 Bedrooms | $890 |
| 3 Bedrooms | $1,160 |
| 4 Bedrooms | $1,290 |
| 5 Bedrooms | $1,496 |
| 6 Bedrooms | $1,676 |
| 7 Bedrooms | $1,810 |
| 8 Bedrooms | $1,901 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,160 | $147,685 | 0.79% | D |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $900 for ZIP 29918 can adequately cover the mortgage on a home priced at $115,458. This concern stems from the fact that FMR represents the maximum amount that a landlord can charge for a rental property under the Section 8 program. To address this, it's important to consider the typical mortgage payments for homes in this price range. Assuming a 30-year fixed-rate mortgage with an interest rate of around 4%, the monthly payment on a $115,458 home would be approximately $550. This leaves a substantial margin between the FMR and the mortgage payment, indicating that the FMR can indeed cover the mortgage, even with additional expenses such as maintenance and insurance.
The investor could also doubt if there is sufficient renter demand in ZIP 29918, given that only 22.8% of households are renters. However, this percentage should be considered alongside the total number of households. With a population of over 1,000 households, 22.8% translates to a significant number of potential tenants. Additionally, the percentage of renters does not necessarily reflect the demand for affordable housing, which is often higher. The presence of a Section 8 program indicates that there is a need for subsidized housing in the area, suggesting that the demand is likely met through other means as well.
A further objection might be whether voucher amounts will keep up with the market rents, currently at $746. While the FMR is set at $900, the actual voucher payment is determined by the Housing Authority and may not always reach the FMR level. It's critical to monitor the trend in voucher payments versus market rents. If the voucher payment remains below the market rent, landlords may face challenges in covering their costs. The data does not provide a direct comparison of historical voucher payments to market rents, but it's worth noting that the gap between the market rent and the voucher amount is relatively narrow. This suggests that while keeping pace is a valid concern, the risk is mitigated by the close alignment of the two figures.
In conclusion, while concerns about mortgage coverage, renter demand, and voucher adequacy are understandable, the data shows that the FMR is sufficient to cover mortgage payments, there is a notable number of renters, and the voucher amount is reasonably aligned with market rents. However, ongoing monitoring of these factors is essential to ensure continued viability of Section 8 properties in ZIP 29918.
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.