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 | $1,360 |
| 1 Bedroom | $1,410 |
| 2 Bedrooms | $1,540 |
| 3 Bedrooms | $1,830 |
| 4 Bedrooms | $2,180 |
| 5 Bedrooms | $2,529 |
| 6 Bedrooms | $2,832 |
| 7 Bedrooms | $3,059 |
| 8 Bedrooms | $3,212 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,540 | $145,514 | 1.06% | B |
| 3BR | $1,830 | $202,191 | 0.91% | C |
| 4BR | $2,180 | $248,057 | 0.88% | C |
| 5BR | $2,529 | $295,545 | 0.86% | C |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,620 for ZIP 30260 (Morrow, GA) in fiscal year 2024 will sufficiently cover the mortgage on a home valued at $211,718. To address this, let's consider the typical mortgage payments in the area.
According to recent data, the median home value in ZIP 30260 is around $198,678. While this figure is slightly lower than the specific home value we're considering, it still provides a useful benchmark. A mortgage on a home valued at $211,718, assuming a 20% down payment and a 30-year fixed-rate mortgage at the current average interest rate, would result in monthly payments that are likely to be covered by the FMR. However, precise mortgage payment figures were not available for this specific ZIP code, so the exact coverage cannot be definitively stated without further research.
The investor may also wonder if there is sufficient renter demand at 52.6% occupancy rate. Data indicates that about 52.7% of housing units in this ZIP code are renter-occupied, which aligns closely with the investor's concern. Additionally, the rental vacancy rate stands at approximately 9.7%, suggesting that there is a reasonable amount of space for new rental properties. This percentage is not excessively high, indicating that the demand for rentals remains stable.
Another objection could be whether Section 8 vouchers will keep pace with the market rents of $1,628. The FMR for the area is set at $1,620, which is slightly below the market rent. This suggests that landlords might face a slight challenge in covering the full market rent with vouchers alone. However, the voucher payment standard is designed to adjust annually based on housing market conditions, ensuring that it remains competitive. It's important to note that voucher amounts can vary based on household size and other factors, but the data does not provide a comprehensive breakdown for ZIP 30260.
In conclusion, while the FMR of $1,620 should cover the mortgage on a home valued at $211,718, the exact figures require further investigation. The renter demand at 52.6% is consistent with the area's profile, and though vouchers may not fully match market rents, they are adjusted to reflect local conditions. These points offer a balanced view of the investment potential in ZIP 30260.
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.