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 | $1,190 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,910 |
| 5 Bedrooms | $2,216 |
| 6 Bedrooms | $2,482 |
| 7 Bedrooms | $2,681 |
| 8 Bedrooms | $2,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,350 | $266,777 | 0.51% | F |
| 3BR | $1,610 | $266,925 | 0.6% | D |
| 4BR | $1,910 | $408,735 | 0.47% | F |
| 5BR | $2,216 | $592,543 | 0.37% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 30268 (Palmetto, GA) reveals interesting insights into potential investment opportunities. Using the Fair Market Rent (FMR) for a 2-bedroom unit set at $1460 per month for FY 2024, the annualized income would be $17,520. Against the median home value of $320,041, this translates to an implied gross yield of approximately 5.5%. To calculate this, divide the annual income by the median home value: $17,520 / $320,041 = 0.0547, or about 5.5%.
On the other hand, using the Zillow Observed Rent Index (ZORI) for a 2-bedroom unit, which stands at $1,902 per month, the annualized income would be $22,824. This results in an implied gross yield of around 7.1%, calculated similarly: $22,824 / $320,041 = 0.0713, or about 7.1%.
Given that Palmetto has a renter density of 27.1%, it's important to consider how this affects the realism of these yields. The lower FMR yield of 5.5% might be more reflective of the actual rental market dynamics, especially considering the high percentage of homeownership. However, the higher ZORI yield of 7.1% could be more attainable if landlords can attract non-Section 8 tenants willing to pay the market rate.
The N/A-day Days on Market (DOM) indicates either very quick sales or limited data, making it difficult to gauge the typical time properties stay on the market. Despite this, the gross yield comparison between the two scenarios provides a clear picture: investing in Section 8 properties would offer a lower gross yield compared to renting at market rates. Landlords should weigh the stability of Section 8 tenancy against the higher returns of market-rate rentals when deciding their investment strategy.
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.