Location: White County, GA | Metro: Gainesville, GA MSA
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 | $1,060 |
| 1 Bedroom | $1,250 |
| 2 Bedrooms | $1,370 |
| 3 Bedrooms | $1,660 |
| 4 Bedrooms | $1,920 |
| 5 Bedrooms | $2,227 |
| 6 Bedrooms | $2,494 |
| 7 Bedrooms | $2,694 |
| 8 Bedrooms | $2,829 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,370 | $229,283 | 0.6% | F |
| 3BR | $1,660 | $312,578 | 0.53% | F |
| 4BR | $1,920 | $374,801 | 0.51% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 30554, Lula, GA, reveals a challenging investment scenario for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a 2-bedroom unit in fiscal year 2024 is set at an annualized rate of $1200, while the market rent based on Census ACS data stands at $996 annually.
To derive the gross yield for these scenarios, we must first calculate the potential rental income. For the Section 8 scenario, the annualized rental income would be $1200. Dividing this by the median home value of $327,090 yields a gross yield of approximately 0.37%. In contrast, the market rent of $996 results in a gross yield of roughly 0.30% when divided by the same median home value.
The higher gross yield under the Section 8 scenario suggests that participating in the program could potentially offer a slightly better return on investment compared to renting at market rates. However, this comparison must be contextualized within the broader rental market dynamics of Lula, GA.
The ZIP code has a renter density of 20.8%, indicating a relatively low proportion of renters in the area. This statistic implies that landlords might face competition from homeownership opportunities, which could affect the occupancy rates and overall performance of rental properties.
The N/A-day DOM (days on market) data indicates that there's insufficient information to assess how quickly rental units are typically filled in this area. However, given the lower renter density, it's reasonable to assume that achieving a steady occupancy rate might be more challenging than in areas with higher renter populations.
In conclusion, while the Section 8 scenario provides a higher gross yield of 0.37% compared to the market rent's 0.30%, the actual return on investment will depend significantly on factors such as occupancy rates and the ability to maintain consistent tenant turnover. Landlords should consider these variables carefully before deciding whether to participate in the Section 8 program in ZIP 30554.
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.