Section 8 Fair Market Rent (FMR) for ZIP 30032 - 2027

Investment Score for ZIP 30032

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,310
1 Bedroom	$1,370
2 Bedrooms	$1,490
3 Bedrooms	$1,780
4 Bedrooms	$2,110
5 Bedrooms	$2,448
6 Bedrooms	$2,742
7 Bedrooms	$2,961
8 Bedrooms	$3,109

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,490	$180,944	0.82%	C
3BR	$1,780	$229,638	0.78%	D
4BR	$2,110	$306,822	0.69%	D
5BR	$2,448	$345,555	0.71%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 30032 (Decatur, GA) #### Section 8 Voucher Dynamics In ZIP code 30032, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $1550 per month. This figure represents 29.6% of the median household income of $62,765. However, the actual rental market in Decatur, GA, is significantly higher. According to the Zillow median price for a two-bedroom property, the value is $177,200, which translates into a price-to-FMR ratio of 9.5x. This means that the typical rent for a two-bedroom unit is likely to be much higher than the FMR, potentially around $14,715 annually ($1550 x 9.5). For Section 8 voucher holders, this creates a significant constraint, as they can only afford properties up to the FMR level. Consequently, voucher holders face limited options in finding suitable housing within their budget. #### Affordability & Renter Profile The population of ZIP 30032 is 42,948, with 43.8% of residents being renters. This indicates a substantial demand for rental properties in the area. The occupancy rate stands at 77.4%, suggesting that there is a moderate level of vacancy but also a fairly tight rental market. Given that 43.8% of the population are renters and the median household income is $62,765, it is reasonable to infer that many renters are low-income families who rely on affordable housing solutions like Section 8 vouchers. The high price-to-FMR ratio of 9.5x implies that the market is relatively expensive compared to what most renters can afford, leading to a challenging environment for those seeking affordable housing. #### Investor Angle From an investor perspective, the ZIP code 30032 offers a mixed picture when considering cash flow and investment grade. At the FMR level, a two-bedroom unit would rent for $1550 per month. However, given the high price-to-FMR ratio, it is unlikely that investors can find properties for sale at the FMR level. The median price of $177,200 for a two-bedroom unit suggests that the purchase cost is significantly higher, and the potential rental income at FMR levels might not cover the mortgage and other expenses, especially if the investor is looking for positive cash flow immediately. The investment grade for this ZIP code would be considered moderate due to the tight rental market and the high price-to-FMR ratio. While there is a strong demand for rental units, the affordability gap makes it difficult for investors to achieve positive cash flow without significant subsidies or a willingness to accept negative cash flow initially. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider focusing on smaller units such as one-bedroom apartments. The FMR for a one-bedroom unit is $1410, which is still a fraction of the median household income. Smaller units tend to have a higher demand in urban areas like Decatur, where space is at a premium. 2. **Target Properties Below Market Value**: Investors should look for off-market deals or properties that are priced below the median market value. If a two-bedroom unit can be acquired for less than $177,200, it could potentially generate positive cash flow at the FMR level. This requires a keen eye for undervalued properties and possibly some negotiation skills. 3. **Consider Government Subsidies**: Given the high demand for affordable housing, investors might want to explore government programs that offer additional subsidies beyond the standard Section 8 voucher. These programs can help bridge the gap between the FMR and the actual market rent, making the investment more financially viable. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 30032 is to **Hold**. The high price-to-FMR ratio and the tight rental market make it challenging to achieve immediate positive cash flow. However, the strong demand for rental properties and the presence of a significant number of low-income renters suggest that there is potential for long-term stability and growth. Investors should focus on smaller units and seek out properties that are undervalued or benefit from additional government subsidies to improve financial viability.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.