Section 8 Fair Market Rent (FMR) for ZIP 30236 - 2027

Investment Score for ZIP 30236

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	$1,230
1 Bedroom	$1,290
2 Bedrooms	$1,400
3 Bedrooms	$1,670
4 Bedrooms	$1,980
5 Bedrooms	$2,297
6 Bedrooms	$2,573
7 Bedrooms	$2,779
8 Bedrooms	$2,918

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	$1,400	$157,204	0.89%	C
3BR	$1,670	$225,413	0.74%	D
4BR	$1,980	$300,967	0.66%	D
5BR	$2,297	$376,919	0.61%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Market Analysis for ZIP Code 30236 (Jonesboro, GA) Jonesboro, GA, located in Clayton County, is home to a population of 50,089 residents. With a significant portion of the population renting—40.8%—the housing market dynamics are crucial for understanding the local rental landscape and its implications for Section 8 voucher holders and investors alike. ### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Jonesboro, GA, in 2026 is set at specific rates for different unit sizes. For a two-bedroom apartment, the FMR is $1,470. This figure represents 26.3% of the median household income in the area, which stands at $66,973. However, it is important to note that the actual rent for a two-bedroom unit on Zillow is significantly higher, at $157,146, leading to a price-to-FMR ratio of 8.9x. This high ratio suggests that the actual market rents far exceed the FMR, creating a challenging environment for Section 8 voucher holders who are constrained by the voucher amount. The difference between the FMR and the actual market rent means that voucher holders may struggle to find suitable housing options within their budget, especially for larger units such as three-bedroom ($1,760) and four-bedroom ($2,100) apartments. ### Affordability & Renter Profile Given the median household income of $66,973, the affordability of housing is a critical issue for many residents. The occupancy rate of 91.0% indicates a robust demand for rental properties, suggesting that the market is relatively tight. The renter profile includes a diverse mix of individuals and families, many of whom rely on government assistance programs like Section 8 to secure affordable housing. However, the disparity between the FMR and actual market rents implies that the majority of renters may face financial strain, particularly those with lower incomes who depend on vouchers. The high price-to-FMR ratio of 8.9x further underscores the challenge of finding affordable housing, making it difficult for low-income households to meet their housing needs without additional support. ### Investor Angle From an investor perspective, the key question is whether the ZIP code offers a cash-flow positive opportunity at the FMR levels. Given the FMRs for various unit sizes, let's consider the potential returns: - **0BR Units**: FMR is $1,280 per month. - **1BR Units**: FMR is $1,340 per month. - **2BR Units**: FMR is $1,470 per month. - **3BR Units**: FMR is $1,760 per month. - **4BR Units**: FMR is $2,100 per month. The actual market rent for a two-bedroom unit is $157,146, which translates to approximately $13,095.50 per month. This is significantly higher than the FMR of $1,470, indicating that properties rented at FMR levels would likely be underpriced compared to the market. However, for investors focusing specifically on Section 8 tenants, the cash flow would be determined by the FMR rather than the market rent. To evaluate the investment grade, we need to consider the cost of acquisition and maintenance. Given the high price-to-FMR ratio, it is clear that purchasing properties at market value would result in a negative cash flow if they were rented solely to Section 8 voucher holders. Therefore, the investment grade for properties in this ZIP code would be low for Section 8-focused investors unless they can acquire properties at a substantial discount below market value. ### Specific Actionable Insights 1. **Focus on Smaller Units**: Investors should focus on acquiring smaller units, such as 0BR and 1BR apartments, where the FMR is lower. For example, a 0BR unit with an FMR of $1,280 might be more feasible to manage financially compared to a 4BR unit with an FMR of $2,100. This strategy could help mitigate the risk associated with the high price-to-FMR ratio. 2. **Seek Below-Market Value Properties**: To ensure a positive cash flow, investors should look for opportunities to purchase properties at a discount. Given the high market values, finding properties that are priced below the Zillow median could provide a better return on investment when rented to Section 8 voucher holders. For instance, a property listed at $120,000 would have a monthly rent of about $1,000, which is closer to the FMR and could offer a more manageable financial situation. 3. **Consider Property Management Costs**: The high price-to-FMR ratio also means that property management costs will be a significant factor. Investors should carefully assess these costs, including maintenance, utilities, and other expenses, to determine if they can be covered by the FMR without incurring losses. This may require a detailed analysis of each property's expenses and potential revenue. ### Bottom Line Based on the provided data, the recommendation for Section 8-focused investors in ZIP code 30236 is to **Skip** purchasing properties at market value due to the high price-to-FMR ratio. The market is tight, with high occupancy rates and actual rents far exceeding the FMR, making it challenging to achieve positive cash flow. Instead, investors should look for properties that are significantly discounted from market value or consider other ZIP codes with more favorable price-to-FMR ratios.

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.