Location: Atlanta-Sandy Springs-Roswell, GA | Metro: Atlanta-Sandy Springs-Roswell, GA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,560 |
| 1 Bedroom | $1,630 |
| 2 Bedrooms | $1,770 |
| 3 Bedrooms | $2,110 |
| 4 Bedrooms | $2,500 |
| 5 Bedrooms | $2,900 |
| 6 Bedrooms | $3,248 |
| 7 Bedrooms | $3,508 |
| 8 Bedrooms | $3,683 |
The analysis for ZIP code 30086 in Georgia reveals incomplete data points, making a comprehensive cap-rate calculation challenging. However, we can still derive some insights based on the available information.
The Fair Market Rent (FMR) for a two-bedroom apartment in ZIP 30086 for fiscal year 2024 is set at $1860 annually. This figure represents the maximum amount that a landlord can charge under the Section 8 program. To calculate the implied gross yield, we need to compare this to the median home value, which is currently not available for this area.
Without the median home value, it's impossible to provide an exact cap rate. However, assuming the median home value were known, the gross yield would be calculated by dividing the annualized rental income by the property value. For instance, if the median home value were $372,000 (a hypothetical figure for demonstration), the gross yield would be approximately 5% ($1860 / $372,000 * 100).
The market rent for the area is also not specified, indicating that there might be a lack of data on typical market rates for similar properties. If the market rent were higher than the Section 8 FMR, the gross yield would be greater, suggesting a potentially better investment outside of the Section 8 program. Conversely, if the market rent aligns closely with the FMR, the yields would be comparable.
The absence of renter density and days on market (DOM) figures makes it difficult to assess the likelihood of finding tenants and the speed at which properties can be leased. These metrics are crucial for determining the feasibility of renting out properties under the Section 8 program versus the open market.
In conclusion, while the exact cap rate cannot be determined due to missing data, the gross yield under the Section 8 program can be estimated if the median home value is known. The realistic scenario depends on the actual market conditions, which are currently unspecified. Investors should gather additional local market data to make informed decisions.
Data Sources: FMR data from HUD (2027).
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.