Section 8 Fair Market Rent (FMR) for ZIP 30038 - 2027

Investment Score for ZIP 30038

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	$1,510
1 Bedroom	$1,570
2 Bedrooms	$1,710
3 Bedrooms	$2,040
4 Bedrooms	$2,420
5 Bedrooms	$2,807
6 Bedrooms	$3,144
7 Bedrooms	$3,396
8 Bedrooms	$3,566

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	$1,710	$126,801	1.35%	A
3BR	$2,040	$226,174	0.9%	C
4BR	$2,420	$302,866	0.8%	D
5BR	$2,807	$408,574	0.69%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 30038 (Lithonia, GA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 30038, as per the 2026 estimates, is set at $1750 for a two-bedroom apartment. However, the actual rent in the area is significantly lower, with the Zillow median price for a two-bedroom property being $131,810. This suggests that the actual rental costs are much below the FMR, which can create constraints for voucher holders. The FMR is designed to ensure that housing is affordable for low-income families, but if the actual rent is much lower than the FMR, landlords might be hesitant to accept vouchers due to the higher administrative burden and the potential for lower returns compared to market rates. #### Affordability & Renter Profile ZIP code 30038 has a population of 43,776, with 35.3% of residents being renters. The occupancy rate stands at 85.5%, indicating a relatively tight rental market. Given that 28.5% of the median household income ($73,694) is allocated towards a three-bedroom apartment's FMR ($2100), it is clear that there is a significant portion of the population that struggles with housing affordability. This percentage indicates that a substantial number of residents are likely to rely on government assistance such as Section 8 vouchers to afford decent housing. The tight market suggests that there is a high demand for rental properties, particularly among those who need financial assistance. With a significant portion of the population renting and a relatively high occupancy rate, the competition for available units is likely fierce, especially for those who qualify for Section 8 vouchers. This makes it essential for landlords to consider the benefits of accepting vouchers, despite the lower rents compared to FMR. #### Investor Angle From an investor’s perspective, the ZIP code 30038 presents a mixed picture when it comes to cash flow and investment grade. The FMR for a two-bedroom unit is $1750, while the actual median price is $131,810. This translates to a price-to-FMR ratio of 6.3x, meaning that the purchase price of a two-bedroom property is approximately six times the monthly rent. Given the lower actual rent compared to the FMR, investors should carefully assess their potential cash flow. If they can secure tenants through Section 8 vouchers, they would receive $1750 per month for a two-bedroom unit. However, the actual market rent is around $1098.42 per month (calculated by dividing the median price by 12 months). This means that accepting Section 8 vouchers could provide a higher monthly income, but it also involves additional paperwork and regulatory compliance. The investment grade for this ZIP code would depend on factors such as the stability of the local economy, the demand for rental properties, and the availability of Section 8 vouchers. Lithonia, being part of Dekalb County, is located near Atlanta, which provides some economic stability and job opportunities. However, the high price-to-FMR ratio indicates that the initial investment cost is quite high relative to the monthly rental income, which could make it challenging for investors to achieve positive cash flow immediately. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units such as one-bedroom or studio apartments. For example, the FMR for a one-bedroom unit is $1600, which is closer to the actual market rent. This could help improve cash flow and reduce the risk of negative returns. 2. **Consider Long-Term Appreciation**: While the immediate cash flow might be challenging, the long-term appreciation of property values in Lithonia could provide a solid return on investment. Investors should evaluate the potential for property value growth over time, considering factors like proximity to Atlanta and the overall economic trends in Dekalb County. 3. **Partner with Local Real Estate Agencies**: To navigate the complexities of the Section 8 program, investors should partner with local real estate agencies that have experience managing Section 8 properties. These agencies can help streamline the process of finding qualified tenants and handling the necessary paperwork, reducing the administrative burden. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 30038 is **Hold**. The high price-to-FMR ratio and the tight rental market suggest that immediate positive cash flow might be difficult to achieve. However, the potential for long-term appreciation and the steady demand for rental properties, especially among those needing financial assistance, make it a viable option for investors willing to wait for returns. Additionally, focusing on smaller units and partnering with experienced local agencies can mitigate some of the risks associated with this investment strategy.

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.