Section 8 Fair Market Rent (FMR) for ZIP 30238 - 2027

Investment Score for ZIP 30238

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	$1,450
1 Bedroom	$1,510
2 Bedrooms	$1,640
3 Bedrooms	$1,950
4 Bedrooms	$2,320
5 Bedrooms	$2,691
6 Bedrooms	$3,014
7 Bedrooms	$3,255
8 Bedrooms	$3,418

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	$1,640	$155,153	1.06%	B
3BR	$1,950	$210,929	0.92%	C
4BR	$2,320	$270,743	0.86%	C
5BR	$2,691	$336,953	0.8%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Market Analysis for ZIP Code 30238 (Jonesboro, GA) Clayton County’s ZIP code 30238, Jonesboro, is a vibrant community with a population of 43,191 residents. The median household income in this area is $62,185, indicating a moderate economic environment. With 36.2% of the population being renters, the rental market plays a significant role in the local economy. The occupancy rate of 91.3% suggests that the housing stock is largely utilized, which could indicate a competitive rental market. ### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for 2026 in ZIP 30238 is set as follows: - 0BR: $1470 - 1BR: $1540 - 2BR: $1690 (32.6% of median income) - 3BR: $2030 - 4BR: $2420 These figures represent the maximum amount that a Section 8 voucher holder can pay for rent based on the size of the unit. However, it is important to note that these FMRs are significantly lower than the actual market rents. For instance, the Zillow median price for a 2BR home in this ZIP code is $156,796, which translates to a monthly mortgage payment of approximately $745 based on a 4.5% interest rate over 30 years. When adding property taxes, insurance, and maintenance costs, the total monthly cost for landlords would be higher. Given the price-to-FMR ratio of 7.7x, it is evident that the actual market rents far exceed the FMRs. This means that voucher holders face significant constraints when trying to find affordable housing. For example, a voucher holder with a 2BR unit would have a maximum rent of $1690, but the actual market rent for a similar unit could be around $12,775 per month ($156,796 annualized). Therefore, voucher holders must often look for units below the FMR to stay within their budget. ### Affordability & Renter Profile The renter profile in ZIP 30238 is diverse, with a significant portion of the population relying on rental properties. Given that 36.2% of the population are renters, this indicates a substantial demand for rental units. The median household income of $62,185 suggests that many renters might struggle to afford market rates, especially for larger units. The affordability issue is particularly pronounced for larger units. A 2BR unit at $1690 represents only 32.6% of the median income, which is relatively manageable. However, a 3BR unit at $2030 would consume about 32.6% of the median income, and a 4BR unit at $2420 would take up nearly 39% of the median income. These high percentages indicate that the market is tight for families needing larger units, and they may need assistance like Section 8 vouchers to afford housing. ### Investor Angle From an investor perspective, the ZIP code 30238 offers a mixed picture. While the actual market rents are much higher than the FMRs, the FMRs themselves provide a baseline for what voucher holders can afford. The Zillow median price for a 2BR home is $156,796, which implies a significant capital investment. However, the rental income potential at FMR levels needs to be assessed. Using the FMR for a 2BR unit ($1690), we can calculate the potential cash flow. Assuming a conservative estimate of expenses (property taxes, insurance, maintenance, etc.) totaling 40% of the gross rental income, the net rental income would be: \[ \text{Gross Rental Income} = \$1690 \] \[ \text{Expenses} = 0.4 \times \$1690 = \$676 \] \[ \text{Net Rental Income} = \$1690 - \$676 = \$1014 \] This net rental income of $1014 per month would cover the mortgage payment of $745, leaving a positive cash flow of $269 per month. However, this positive cash flow is minimal and would be further reduced by any unforeseen maintenance costs or vacancy periods. ### Investment Grade The investment grade for this ZIP code would be considered low due to the tight margin between the mortgage payment and the net rental income. Additionally, the high price-to-FMR ratio of 7.7x suggests that the market rents are well above the FMR, making it challenging for voucher holders to find suitable housing. This could lead to a higher turnover rate among tenants, which is undesirable for investors seeking stable returns. ### Specific Actionable Insights 1. **Focus on Smaller Units**: Investors should focus on smaller units such as 0BR and 1BR apartments. These units are more likely to be rented by voucher holders since the FMR for these units is closer to the actual market rents. For example, a 1BR unit at $1540 would be more feasible for a tenant with a Section 8 voucher. 2. **Consider Location and Amenities**: To attract voucher holders, investors should consider the location and amenities of the properties. Properties located near public transportation, schools, and essential services will be more attractive to voucher holders who may have limited mobility options. 3. **Negotiate with Landlords**: Since the market rents are significantly higher than the FMRs, investors should negotiate with landlords to ensure that rents do not exceed the FMR. This negotiation is crucial to make the units accessible to voucher holders and to avoid the risk of non-payment. ### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 30238 is to **Skip**. The high price-to-FMR ratio and the tight margin between mortgage payments and net rental income make it a challenging market. While there is a significant number of renters, the financial dynamics suggest that the returns would be minimal, and the operational challenges would be high. Investors looking for stable and positive cash flows should consider other ZIP codes with better alignment between FMRs and market rents.

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.