Section 8 Fair Market Rent (FMR) for ZIP 30605 - 2027

Investment Score for ZIP 30605

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	$1,050
1 Bedroom	$1,070
2 Bedrooms	$1,220
3 Bedrooms	$1,570
4 Bedrooms	$1,650
5 Bedrooms	$1,914
6 Bedrooms	$2,144
7 Bedrooms	$2,316
8 Bedrooms	$2,432

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	$1,070	$219,232	0.49%	F
2BR	$1,220	$248,334	0.49%	F
3BR	$1,570	$325,774	0.48%	F
4BR	$1,650	$400,861	0.41%	F
5BR	$1,914	$504,519	0.38%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 30605 (Athens, GA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 30605 is set by HUD for 2026. For a two-bedroom unit, the FMR is $1280. However, the actual rental market in Athens, GA, is significantly higher. The Zillow median price for a two-bedroom home in this area is $246,698, which translates to a price-to-FMR ratio of 16.1 times. This indicates that the actual rental prices are much higher than what is considered fair market rent by HUD standards. For voucher holders, this means that the rents they can afford under the Section 8 program are substantially lower than the average market rents. A tenant with a Section 8 voucher would be limited to paying up to $1280 per month for a two-bedroom unit, which is only about 30.7% of the median household income in the area. This constraint makes it difficult for voucher holders to find suitable housing, as landlords may prefer higher-paying tenants who do not require vouchers. #### Affordability & Renter Profile ZIP code 30605 has a high percentage of renters, with 63.8% of households renting their homes. The occupancy rate stands at 93.8%, indicating a tight rental market where most available units are occupied. Given the median household income of $50,062, many residents struggle to afford the high rental prices, especially those relying on Section 8 vouchers. The high rent-to-income ratio suggests that the market is quite competitive, with many renters potentially facing challenges in finding affordable housing. The median household income is relatively low compared to the median rental prices, making it a challenging environment for low-income families and individuals. The high percentage of renters also implies that there is a significant demand for rental properties, but the supply might not meet the needs of all residents, particularly those with limited financial resources. #### Investor Angle From an investor perspective, the ZIP code 30605 presents both opportunities and challenges. The FMR for a two-bedroom unit is $1280, but the actual median rental price is likely to be higher due to the tight market conditions. If we assume that the actual rental price aligns with the Zillow median price, then the monthly rental income would be around $1280 based on the FMR. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with rental properties. These include mortgage payments, property taxes, insurance, maintenance, and other operational costs. Given the Zillow median price of $246,698 for a two-bedroom home, the monthly mortgage payment (assuming a 30-year fixed-rate mortgage at 4.5%) would be approximately $1215. Adding property taxes (estimated at 1.2% of the home value), insurance (around $100 per month), and maintenance costs (typically 1% of the home value), the total monthly expenses could be around $1400-$1500. Given these estimates, the FMR of $1280 would not cover the total monthly expenses, resulting in a negative cash flow scenario for investors. This suggests that the ZIP code is not financially viable for investors focusing solely on Section 8 rents without additional subsidies or incentives. #### Investment Grade Considering the high price-to-FMR ratio and the negative cash flow potential, the investment grade for ZIP code 30605 is relatively low for Section 8-focused investors. The tight rental market and high demand for affordable housing create a challenging environment where investors must carefully balance their financial expectations with the realities of the local rental market. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Investors should consider focusing on smaller units such as one-bedroom or studio apartments, where the FMR is lower ($1140 and $1120 respectively). This could provide a better chance of achieving positive cash flow, although the competition for these units will still be intense. 2. **Seek Additional Subsidies**: To make the investment more viable, investors should explore additional subsidies or programs that can help bridge the gap between FMR and actual rental costs. This could include state or local housing assistance programs, tax credits, or other incentives designed to support affordable housing. 3. **Target Lower-Priced Properties**: Investors should look for properties that are priced below the Zillow median. For example, a two-bedroom home priced at $200,000 would have a lower monthly mortgage payment of around $980, which could bring the total expenses closer to the FMR of $1280. This strategy could help achieve a more balanced cash flow position. #### Bottom Line Based on the provided data, the recommendation for Section 8-focused investors in ZIP code 30605 is to **Skip** this market. The high price-to-FMR ratio and the tight rental market make it challenging to achieve positive cash flow using only Section 8 rents. While there is a strong demand for affordable housing, the financial constraints and low investment grade suggest that this area may not be suitable for investors looking to generate consistent returns through Section 8 rentals.

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.