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While a normal moisture level for drywall is between 5% and 12%, replacement is recommended if you get consistent readings above 17%. At this level, the drywall is likely too compromised by extensive moisture damage to be considered safe. You can replace either the entire sheet or just the affected section. If you are unsure after a visual inspection, it is best to have a contractor or water restoration provider use a professional moisture meter to get an accurate reading.

Whether you need drywall anchors depends on your specific project, particularly where you are hanging an item. Drywall anchors are not necessary if you can drive a screw directly into a wooden stud behind the wall, as the stud provides sufficient support. However, since studs are not present everywhere in a wall, you will need to use drywall anchors if you are hanging an object in a location without a stud. For very lightweight items, picture hanging strips can also be a suitable alternative.

When choosing materials for finishing basement walls, consider factors such as moisture resistance, durability, and fire resistance. Opt for materials specifically designed for basement environments, like moisture-resistant drywall or cement board. Insulation with vapor barriers can help regulate temperature and prevent condensation. Consider using mold-resistant paints or coatings. 

Research and consult with experts to select materials that are suitable for your specific basement conditions and intended use. Prioritize quality and compatibility to achieve long-lasting and aesthetically pleasing results.

You may need to replace drywall because of smoke damage. If the drywall is covered in soot, you may be able to clean it, but it will require a lot of time and effort. You could spend hours cleaning the drywall only to find there is more damage and it needs to be replaced anyway. It’s usually easier and safer to remove the smoke-damaged drywall and replace it.