Location: Atlanta-Sandy Springs-Roswell, GA | Metro: Atlanta-Sandy Springs-Roswell, GA HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $960 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,090 | $231,685 | 0.47% | F |
| 3BR | $1,300 | $331,036 | 0.39% | F |
| 4BR | $1,540 | $449,884 | 0.34% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 30170 in Georgia reveals a significant difference between the federal market rent (FMR) and the actual market rent, impacting the gross yield for potential investments.
The annualized 2BR FMR for ZIP 30170 in fiscal year 2024 is set at $1260. Given the median home value of $324,418, this translates into an implied gross yield of approximately 4.5%. This calculation is derived by dividing the annualized FMR ($1260 * 12 months = $15,120) by the median home value ($324,418), resulting in a gross yield of about 4.5%.
In contrast, the market rent for a 2BR property in ZIP 30170, based on Census ACS data, stands at $973 per month. Annualizing this figure yields $11,676, which when divided by the median home value of $324,418, results in an implied gross yield of roughly 3.6%.
Given the 20.2% renter density in the area, it is important to consider the realistic scenario for investment. The FMR of $1260 provides a higher gross yield, making it more attractive on paper. However, the actual market rent of $973 is more reflective of the current rental environment. With the day DOM (days on market) being N/A, it suggests that the turnover rate for rentals might be stable, though without specific data, this remains speculative.
The disparity between the FMR and market rent highlights the challenge faced by landlords participating in the Section 8 program. While the FMR offers a higher gross yield, it is essential to evaluate whether tenants can consistently meet this higher rent through their voucher allocations. The lower market rent of $973, however, ensures a more reliable income stream, albeit with a reduced gross yield.
In conclusion, while the 4.5% gross yield based on the FMR is theoretically possible, the 3.6% gross yield based on the actual market rent is likely a more realistic expectation for landlords and small-portfolio investors in ZIP 30170. This analysis underscores the importance of understanding local rental dynamics before committing to Section 8 investments.
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.