Location: Beaufort County, SC | Metro: Beaufort County, 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 | $1,800 |
| 1 Bedroom | $1,870 |
| 2 Bedrooms | $2,040 |
| 3 Bedrooms | $2,430 |
| 4 Bedrooms | $2,920 |
| 5 Bedrooms | $3,387 |
| 6 Bedrooms | $3,793 |
| 7 Bedrooms | $4,096 |
| 8 Bedrooms | $4,301 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,870 | $649,512 | 0.29% | F |
| 2BR | $2,040 | $334,945 | 0.61% | D |
| 3BR | $2,430 | $784,991 | 0.31% | F |
| 4BR | $2,920 | $1,109,672 | 0.26% | F |
| 5BR | $3,387 | $1,518,499 | 0.22% | F |
U.S. Census Bureau data (2024)
The real estate market in ZIP 29926, Hilton Head Island, SC, reveals a robust environment for both homeowners and investors. The median home value stands at $759,478, indicating a high-end market that attracts affluent buyers. Despite this premium pricing, only 0.2% of listings have been reduced, suggesting strong seller pricing power. This is further supported by a median days on market (DOM) of 38 days, which is relatively low, implying homes are selling quickly once listed.
The combination of high median home values, minimal price reductions, and quick sales cycles signals that the local real estate market is healthy and likely to sustain current price levels over the next 12-24 months. Landlords and small-portfolio investors can expect to maintain their property values without significant downward pressure.
On the rental side, the Federal Market Rent (FMR) for ZIP 29926 in fiscal year 2024 is set at $1,740, while the market rent, as measured by ZORI (Zillow Observed Rent Index), is $2,826. This substantial gap between subsidized and market rents highlights the attractiveness of the area for tenants willing to pay higher market rates. For long-term hold investors, this dynamic suggests a potential for steady rental income growth, as market rents are likely to remain above the subsidized rates due to the island's desirability and limited supply.
The setup implied by the data supports a realistic appreciation thesis for long-hold investors. With a strong local economy, limited housing inventory, and high demand from both buyers and renters, properties in ZIP 29926 are poised to retain their value and potentially appreciate over time. However, appreciation will depend on broader economic conditions and the continued appeal of the island as a desirable place to live and visit.
To summarize, the current market indicators point to a stable and potentially appreciating real estate market in Hilton Head Island, SC. The pricing power of sellers and the disparity between subsidized and market rents suggest a favorable environment for maintaining property values and earning consistent rental income.
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.