Location: Atlanta-Sandy Springs-Roswell, GA | Metro: Atlanta-Sandy Springs-Roswell, GA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,300 |
| 1 Bedroom | $1,350 |
| 2 Bedrooms | $1,470 |
| 3 Bedrooms | $1,750 |
| 4 Bedrooms | $2,080 |
| 5 Bedrooms | $2,413 |
| 6 Bedrooms | $2,703 |
| 7 Bedrooms | $2,919 |
| 8 Bedrooms | $3,065 |
The analysis of the Section 8 cap rate for ZIP code 30320 in Georgia provides a detailed insight into the potential rental income and property values. With the Fair Market Rent (FMR) for a two-bedroom apartment set at $1560 annually for fiscal year 2024, we can derive a preliminary understanding of the gross yield for properties in this area.
Given that the median home value in ZIP 30320 is not available, we must rely on the annualized FMR to estimate the gross yield. Assuming a property value of $200,000 as a benchmark for analysis, the gross yield would be calculated as follows:
$1560 / $200,000 = 0.78%
This implies a gross yield of 0.78% when considering the FMR. However, since the market rent is also not available, it's important to note that the actual gross yield could be higher if market rents exceed the FMR. For instance, if market rents were hypothetically $1800 annually, the gross yield would be:
$1800 / $200,000 = 0.9%
The implied gross yield based on the FMR of $1560 is 0.78%, while a hypothetical market rent of $1800 would imply a gross yield of 0.9%. Given the lack of specific data on renter density and days on market (DOM), it's challenging to determine which scenario is more realistic. Typically, a higher renter density and shorter DOM suggest a stronger rental market, potentially supporting higher market rents.
Investors should use these figures as a starting point for their own calculations, considering local market conditions and their specific investment goals. The gross yield comparison between the FMR and a higher market rent figure highlights the variability in potential returns, emphasizing the importance of thorough local market research.
Data Sources: FMR data from HUD (2027).
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.