Section 8 Fair Market Rent (FMR) for ZIP 30294 - 2027

Investment Score for ZIP 30294

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	$1,580
1 Bedroom	$1,640
2 Bedrooms	$1,790
3 Bedrooms	$2,130
4 Bedrooms	$2,530
5 Bedrooms	$2,935
6 Bedrooms	$3,287
7 Bedrooms	$3,550
8 Bedrooms	$3,728

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,790	$174,092	1.03%	B
3BR	$2,130	$238,647	0.89%	C
4BR	$2,530	$305,456	0.83%	C
5BR	$2,935	$388,272	0.76%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 30294 (Ellenwood, GA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 30294 is set by HUD for 2026, with the following rates: - 0BR: $1650 - 1BR: $1720 - 2BR: $1890 - 3BR: $2270 - 4BR: $2710 These figures represent the maximum amount that a Section 8 voucher holder can pay towards rent. However, it's important to note that the actual rents in the area might be higher. The price-to-FMR ratio for 2BR units is 7.5x, indicating that the median home value on Zillow is $170,876, which is significantly higher than the FMR. This suggests that the actual rental market may also be above the FMR levels. For voucher holders, this means they face significant constraints. The FMR for a 2BR unit is $1890, which is only 28.4% of the median household income ($79,762). This implies that while the FMR is affordable relative to income, finding properties within this limit could be challenging given the high price-to-FMR ratio. #### Affordability & Renter Profile ZIP code 30294 has a population of 41,983, with 19.4% of residents being renters. The occupancy rate is 91.4%, suggesting a relatively tight market where most available housing units are occupied. Given the median household income of $79,762, the majority of residents likely have stable employment and can afford homes outside the FMR range. However, the 19.4% of renters may include individuals who are struggling to find affordable housing. The FMR for a 2BR unit is $1890, which is less than half of the median income, making it potentially attractive for lower-income households. Nevertheless, the high price-to-FMR ratio indicates that the market is not oversupplied with affordable rentals, and competition among renters could be fierce. #### Investor Angle From an investor perspective, the ZIP code 30294 presents both opportunities and challenges. The FMR for a 2BR unit is $1890, but the actual rental market is likely to be much higher due to the 7.5x price-to-FMR ratio. For example, if the average rental price for a 2BR unit is around $14,175 annually (7.5x $1890), then the potential rental income would be significantly higher than the FMR. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical operating expenses and mortgage payments. Assuming an average annual expense of 40% of gross rental income, the expenses would be approximately $5,670 per year for a 2BR unit. If the property were purchased at the median home value of $170,876, with a typical mortgage interest rate of 5%, the monthly mortgage payment would be around $900, or $10,800 annually. Therefore, the net cash flow at FMR would be: \[ \text{Annual Rental Income} - \text{Annual Expenses} - \text{Annual Mortgage Payment} \] \[ $14,175 - $5,670 - $10,800 = -$2,305 \] This calculation shows that at FMR, the property would not generate positive cash flow. However, the actual rental market is likely to be higher, so investors could potentially achieve positive cash flow by renting above FMR. In terms of investment grade, ZIP code 30294 appears to be moderately attractive. The high occupancy rate suggests strong demand, and the median income level indicates a stable economic base. However, the limited number of renters and the high price-to-FMR ratio suggest that the market is not highly favorable for low-cost rentals. #### Specific Actionable Insights 1. **Focus on Properties Below FMR**: Investors should look for properties that can be rented below the FMR to attract Section 8 voucher holders. For instance, a 2BR unit priced at $1890 or slightly above would be ideal for voucher holders. This requires careful selection of properties that are either in less desirable locations or have lower maintenance costs. 2. **Consider Multi-Family Units**: Given the high price-to-FMR ratio, multi-family units (such as duplexes or small apartment buildings) might offer better opportunities. These units can spread the cost over multiple units, potentially allowing for positive cash flow even when individual units are rented at or below FMR. 3. **Engage with Local Real Estate Agents**: To understand the local rental market dynamics, investors should engage with local real estate agents who can provide insights into the actual rental prices and vacancy rates. This will help in setting realistic expectations and pricing strategies. #### Bottom Line For Section 8-focused investors, ZIP code 30294 is a **Hold** recommendation. While there is a strong demand for housing, the high price-to-FMR ratio makes it challenging to find properties that can be rented profitably at FMR. Investors should carefully evaluate their portfolio and consider focusing on properties that can be rented just above FMR to ensure positive cash flow. Additionally, engaging with local real estate professionals and understanding the nuances of the local market will be crucial for success.

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.