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 | $1,710 |
| 1 Bedroom | $1,780 |
| 2 Bedrooms | $1,940 |
| 3 Bedrooms | $2,310 |
| 4 Bedrooms | $2,780 |
| 5 Bedrooms | $3,225 |
| 6 Bedrooms | $3,612 |
| 7 Bedrooms | $3,901 |
| 8 Bedrooms | $4,096 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,780 | $410,765 | 0.43% | F |
| 2BR | $1,940 | $553,118 | 0.35% | F |
| 3BR | $2,310 | $1,020,872 | 0.23% | F |
| 4BR | $2,780 | $1,846,616 | 0.15% | F |
| 5BR | $3,225 | $3,029,431 | 0.11% | F |
U.S. Census Bureau data (2024)
ZIP code 29928 is located in a high-end residential area of Hilton Head Island, South Carolina. This neighborhood is characterized by its affluent residents and low rental rate compared to ownership. With a total population of 15,785, only 16.7% of the residents are renters, indicating a predominantly owner-occupied community. The median household income in this area is a robust $97,576, reflecting the wealth of its inhabitants. Furthermore, the median home value stands at an impressive $779,797, underscoring the premium nature of the real estate market here.
The rent economics in ZIP 29928 present a stark contrast between government-subsidized housing and the private market. The Fair Market Rent (FMR), which is the benchmark used by the U.S. Department of Housing and Urban Development (HUD) for determining payment standards under the Section 8 program, is set at $1,800 for the fiscal year 2024. In sharp comparison, the market rent, as measured by the Zillow Observed Rental Index (ZORI), is significantly higher at $3,982. This substantial gap highlights the limited potential for Section 8 vouchers to cover market rents in this upscale location.
Given these economic conditions, ZIP 29928 would be challenging for a hands-off voucher operator. The disparity between FMR and market rents suggests that tenants relying solely on Section 8 vouchers would struggle to find affordable housing, thereby limiting the pool of potential tenants. On the other hand, a hands-on value-add buyer could potentially succeed by targeting a niche market or offering properties at a price point closer to the FMR. However, such an approach would require active management and possibly renovations to attract and retain tenants who can benefit from the voucher program.
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.