Section 8 Fair Market Rent (FMR) for ZIP 30097 - 2027

Investment Score for ZIP 30097

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	$1,840
1 Bedroom	$1,920
2 Bedrooms	$2,090
3 Bedrooms	$2,490
4 Bedrooms	$2,960
5 Bedrooms	$3,434
6 Bedrooms	$3,846
7 Bedrooms	$4,154
8 Bedrooms	$4,362

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	$2,090	$338,224	0.62%	D
3BR	$2,490	$451,405	0.55%	F
4BR	$2,960	$660,083	0.45%	F
5BR	$3,434	$1,023,032	0.34%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 30097 (Duluth, GA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 30097 is set by HUD for 2026, with the following rates: - 0BR: $1890 - 1BR: $1980 - 2BR: $2170 (20.9% of median income) - 3BR: $2600 - 4BR: $3110 To understand how these FMRs compare to actual rents, we can look at the Zillow median price for a 2BR property, which is $346,799. This translates to a monthly mortgage payment of approximately $1,830 based on a 4.5% interest rate over 30 years. However, the price-to-FMR ratio for a 2BR unit is 13.3x, indicating that the median home value is significantly higher than the FMR. This suggests that actual rental prices in the area could be much higher than the FMR, making it challenging for Section 8 voucher holders to find affordable housing. #### Affordability & Renter Profile ZIP code 30097 has a population of 46,876, with 29.1% being renters. The occupancy rate is 96.6%, indicating a high demand for housing. Given the median household income of $124,890, the 2BR FMR of $2170 represents only 20.9% of the median income, suggesting that the majority of residents can afford higher rents. The tight market conditions mean that there is a strong competition for rental units, and landlords can charge above the FMR without difficulty. This makes it particularly hard for low-income households relying on Section 8 vouchers, as they might struggle to find properties within their budget. The 29.1% renter population is relatively small compared to other areas, implying that the rental market is not as large or diverse, which could lead to limited options for voucher holders. #### Investor Angle From an investor perspective, the ZIP code 30097 offers mixed prospects. While the high occupancy rate indicates strong demand, the price-to-FMR ratio of 13.3x suggests that rental properties are likely to be priced well above the FMR. For instance, a 2BR unit with a Zillow median price of $346,799 would have a monthly mortgage payment of around $1,830, but the actual rental price would need to be closer to $2,170 to cover the mortgage and still be within the FMR limit. However, if an investor can secure a property below the Zillow median price, they might achieve positive cash flow. For example, a 2BR unit priced at $250,000 would have a monthly mortgage payment of about $1,250, allowing for a rental price of $2,170, which would result in a positive cash flow of $920 per month before expenses. This scenario would be ideal for Section 8-focused investors. #### Specific Actionable Insights 1. **Target Lower-Priced Properties**: Investors should focus on acquiring properties that are priced below the Zillow median price. For instance, a 2BR unit priced at $250,000 would provide a positive cash flow when rented at the FMR of $2,170. 2. **Consider Smaller Units**: Given the high price-to-FMR ratio, smaller units such as 0BR or 1BR might offer better opportunities for positive cash flow. These units typically command lower rents, making it easier to stay within the FMR limits while still covering mortgage payments and expenses. #### Bottom Line Based on the analysis, the recommendation for Section 8-focused investors in ZIP code 30097 is to **Skip** this market. The high price-to-FMR ratio and tight rental market make it difficult to achieve positive cash flow while adhering to the FMR guidelines. Additionally, the limited number of renters and the high competition for housing suggest that finding suitable properties for Section 8 tenants will be challenging. Investors looking to enter this market should consider alternative ZIP codes with more favorable conditions for Section 8 properties.

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.