Section 8 Fair Market Rent (FMR) for ZIP 30506 - 2027

Investment Score for ZIP 30506

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	$1,190
1 Bedroom	$1,370
2 Bedrooms	$1,490
3 Bedrooms	$1,790
4 Bedrooms	$2,140
5 Bedrooms	$2,482
6 Bedrooms	$2,780
7 Bedrooms	$3,002
8 Bedrooms	$3,152

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
1BR	$1,370	$276,221	0.5%	F
2BR	$1,490	$277,787	0.54%	F
3BR	$1,790	$377,440	0.47%	F
4BR	$2,140	$559,528	0.38%	F
5BR	$2,482	$720,815	0.34%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 30506 (Gainesville, GA) #### Section 8 Voucher Dynamics In ZIP code 30506, the Fair Market Rent (FMR) for a two-bedroom unit is set at $1530 per month, which represents approximately 18.8% of the median household income of $97,413. This suggests that a significant portion of the population can afford to pay the FMR for a two-bedroom unit without financial strain. However, it is important to understand how these FMRs compare to actual rental rates in the area. The FMRs for various bedroom units are as follows: - 0BR: $1230 - 1BR: $1390 - 2BR: $1530 - 3BR: $1850 - 4BR: $2160 To determine if there are constraints for voucher holders, we need to consider the actual rent levels in the market. The Zillow median price for a two-bedroom home in Gainesville is $278,238, which translates to a monthly mortgage payment of around $1,160 assuming a 30-year fixed-rate mortgage at 4.5%. However, the price-to-FMR ratio is 15.2x, indicating that the median home price is significantly higher than the FMR for a two-bedroom unit. This implies that the actual rental rates in the market are likely much higher than the FMRs. Given that the FMRs are lower than the actual rental rates, voucher holders may find it challenging to secure housing that meets their needs. Landlords might be hesitant to accept vouchers due to the higher actual rental rates in the market, leading to potential difficulties for voucher holders in finding suitable accommodation. #### Affordability & Renter Profile ZIP code 30506 has a relatively low renter percentage of 16.0%, suggesting that the majority of residents are homeowners. With a median household income of $97,413, renters in this area are likely to be middle-class individuals or families who can afford higher rents but choose not to own property due to various reasons such as lifestyle preferences or financial considerations. The occupancy rate of 87.3% indicates that the rental market is moderately tight, but not overly constrained. There is still room for new rental properties to enter the market without causing significant oversupply issues. However, the high price-to-FMR ratio suggests that the rental market is skewed towards higher-end properties, making it less affordable for low-income households who rely on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 30506 offers a mixed landscape. The actual rental rates are much higher than the FMRs, which means that properties rented under Section 8 vouchers will likely generate lower cash flow compared to market-rate rentals. For example, a two-bedroom unit rented at the FMR of $1530 would generate significantly less income than renting it at the market rate, which could be upwards of $2,000 based on the price-to-FMR ratio. Despite this, the relatively high median household income and moderate occupancy rate suggest that there is demand for rental properties in the area. Investors should focus on properties that can be rented at market rates to maximize cash flow. If an investor is considering properties specifically for Section 8 tenants, they should ensure that the property management costs and vacancy rates are accounted for, as these can impact overall profitability. The investment grade for this ZIP code would be considered moderate. While there is demand for rentals, the constraints imposed by the FMRs make it less attractive for purely Section 8-focused investments. Investors looking to diversify their portfolio with both market-rate and Section 8 tenants might find this ZIP code more appealing. #### Specific Actionable Insights 1. **Focus on Market-Rate Rentals**: Given the high price-to-FMR ratio, investors should prioritize properties that can be rented at market rates. A two-bedroom unit rented at $2,000 per month would provide a much better cash flow compared to renting it at the FMR of $1530. 2. **Consider Mixed-Income Developments**: To cater to both market-rate and Section 8 tenants, investors could explore developing mixed-income housing projects. This approach allows for a balanced tenant mix, potentially reducing the risk of lower cash flow while still serving the community. 3. **Evaluate Property Management Costs**: Since the rental market is skewed towards higher-end properties, the cost of property management might be higher due to the need for better maintenance and amenities. Investors should carefully evaluate these costs before deciding to invest in Section 8 properties. #### Bottom Line For investors focused primarily on Section 8 vouchers, the recommendation for ZIP code 30506 would be to **skip**. The high price-to-FMR ratio and the tight rental market indicate that the cash flow from Section 8 properties would be insufficient to cover the higher costs associated with property management and maintenance in this area. However, for those willing to diversify their tenant base and include market-rate rentals, the ZIP code could be considered for **hold** or even **buy**, depending on the specific investment strategy and risk tolerance. In summary, while the rental market in ZIP code 30506 is robust and supports higher-end properties, the constraints imposed by the FMRs make it less favorable for pure Section 8 investments. Investors should carefully weigh the benefits and drawbacks before committing to this market.

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.