Section 8 Fair Market Rent (FMR) for ZIP 30034 - 2027

Investment Score for ZIP 30034

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	$1,390
1 Bedroom	$1,450
2 Bedrooms	$1,580
3 Bedrooms	$1,880
4 Bedrooms	$2,240
5 Bedrooms	$2,598
6 Bedrooms	$2,910
7 Bedrooms	$3,143
8 Bedrooms	$3,300

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,580	$146,496	1.08%	B
3BR	$1,880	$221,688	0.85%	C
4BR	$2,240	$274,093	0.82%	C
5BR	$2,598	$325,069	0.8%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 30034 (Decatur, GA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 30034 is set by HUD for 2026 and ranges from $1,390 for a zero-bedroom unit to $2,280 for a four-bedroom unit. The FMR for a two-bedroom unit is $1,590, which represents 30.0% of the median household income in the area. However, the actual rental market prices can be significantly higher. For instance, Zillow reports that the median price for a two-bedroom home in Decatur is $146,077, which translates into a monthly mortgage payment far exceeding the FMR. This discrepancy suggests that the actual rents in the area could be much higher than the FMR, potentially creating a challenge for tenants using Section 8 vouchers. Given that the FMR for a two-bedroom unit is $1,590, landlords who wish to participate in the Section 8 program must ensure their rent does not exceed this amount. If the actual market rent for similar units is higher, it could limit the number of available properties for voucher holders. This constraint is particularly relevant since 31.7% of the population in 30034 are renters, indicating a significant portion of the community relies on affordable housing options. #### Affordability & Renter Profile Decatur, GA, has a population of 41,847, with a median household income of $63,517. The occupancy rate stands at 79.8%, suggesting that while there is a reasonable supply of housing, it is not oversupplied. With 31.7% of the population renting, the demand for rental properties is substantial. However, the affordability of these rentals is a concern given the high price-to-FMR ratio of 7.7x. This means that the median home price is nearly eight times the FMR for a two-bedroom unit, making homeownership less accessible for many residents, especially those relying on rental assistance programs like Section 8. The high price-to-FMR ratio indicates that the rental market is relatively tight, and there is a significant gap between what tenants can afford and the actual market rates. This tight market can lead to competition among renters, driving up rental prices and making it difficult for low-income families to find suitable housing. Consequently, the demand for affordable rental units supported by Section 8 vouchers is likely to remain strong. #### Investor Angle From an investor perspective, the key question is whether the ZIP code offers cash flow-positive opportunities at the FMR levels. Given that the FMR for a two-bedroom unit is $1,590, and assuming the actual rental market prices are higher, there is potential for investors to generate positive cash flow if they can secure properties below the market rate but above the FMR. However, the high price-to-FMR ratio of 7.7x suggests that property values are significantly higher than the FMR, which could make it challenging to find properties that offer a positive cash flow at the FMR level. Additionally, the limited supply of affordable rental units could mean that investors might face competition from other landlords seeking to capitalize on the demand for Section 8 properties. The investment grade for this ZIP code would depend on several factors, including the ability to acquire properties at a price that allows for a positive cash flow when rented at the FMR. Given the high property values relative to the FMR, the investment grade is likely to be moderate to low, unless investors can leverage strategies such as renovations or cost-saving measures to improve profitability. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on acquiring smaller units, such as zero-bedroom or one-bedroom apartments, where the FMR is lower ($1,390 and $1,450 respectively). These units are more likely to offer positive cash flow at the FMR level, especially if purchased at a discount or through strategic financing. 2. **Target Undervalued Properties**: Investors should look for undervalued properties in the area, such as distressed assets or foreclosures, that can be acquired below the median market value. By securing properties at a lower price point, investors can increase their chances of achieving positive cash flow when renting them out at the FMR. 3. **Consider Renovation Projects**: Investors might consider purchasing older properties that require renovations. By investing in improvements, they can potentially increase the rental value while still maintaining a competitive position within the Section 8 program. For example, a two-bedroom unit with an FMR of $1,590 could be renovated to meet modern standards, thereby attracting tenants willing to pay closer to the market rate. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 30034 is to **Hold**. While there is a strong demand for affordable rental units, the high price-to-FMR ratio makes it challenging to find properties that offer a positive cash flow at the FMR level. Investors should carefully evaluate their acquisition strategy and consider focusing on smaller units or undervalued properties to maximize their chances of success. Additionally, renovation projects could provide a pathway to generating better returns while still participating in the Section 8 program. Overall, the market dynamics suggest that while there are opportunities, they come with significant challenges that require thoughtful planning and execution.

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.