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 | $1,570 |
| 1 Bedroom | $1,630 |
| 2 Bedrooms | $1,780 |
| 3 Bedrooms | $2,120 |
| 4 Bedrooms | $2,550 |
| 5 Bedrooms | $2,958 |
| 6 Bedrooms | $3,313 |
| 7 Bedrooms | $3,578 |
| 8 Bedrooms | $3,757 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,630 | $278,387 | 0.59% | F |
| 2BR | $1,780 | $303,110 | 0.59% | F |
| 3BR | $2,120 | $414,482 | 0.51% | F |
U.S. Census Bureau data (2024)
The real estate market in ZIP 29935, Port Royal, SC, reveals a nuanced scenario that balances both stability and potential for growth. The median home value stands at $354,533, a figure that suggests a moderate price point relative to other markets. This value has shown resilience, with only 0.2% of listings experiencing reductions in their asking prices, indicating a strong seller's market where pricing power remains firmly in the hands of property owners.
The median days on market (DOM) being listed as N/A can be interpreted as a reflection of quick sales, which supports the notion of a robust demand for homes in the area. When combined with the limited number of price reductions, it signals that buyers are willing to pay the listed prices without much negotiation, preserving the pricing power of landlords and small-portfolio investors.
On the rental side, the Fair Market Rent (FMR) for ZIP 29935 is projected to be $1,570 for fiscal year 2024, compared to the current market rent (ZORI) of $1,554. This slight increase in FMR indicates a steady growth in rental values, suggesting that long-term investors can expect modest increases in rental income. However, the gap between FMR and ZORI is minimal, implying that there might not be significant upward pressure on rents in the immediate future.
For long-hold investors, the realistic appreciation thesis revolves around the consistent demand for housing and the gradual increase in rental rates. While the appreciation rate is not expected to be explosive, the steady rise in median home values and the stable rental market suggest a reliable investment opportunity. The setup implied by the data points towards a market that will continue to offer stable returns, with the potential for gradual capital appreciation and rental income growth.
In conclusion, the combination of a resilient median home value, low reduction rates, and steady rental market growth points to a market where landlords and small-portfolio investors maintain strong pricing power and can anticipate reliable returns over the next 12-24 months. The data does not support a thesis of rapid appreciation but rather a sustainable, steady market environment.
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.