Section 8 Fair Market Rent (FMR) for ZIP 30701 - 2027

Investment Score for ZIP 30701

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	$740
1 Bedroom	$850
2 Bedrooms	$1,080
3 Bedrooms	$1,390
4 Bedrooms	$1,630
5 Bedrooms	$1,891
6 Bedrooms	$2,118
7 Bedrooms	$2,287
8 Bedrooms	$2,401

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
2BR	$1,080	$195,051	0.55%	F
3BR	$1,390	$270,428	0.51%	F
4BR	$1,630	$337,488	0.48%	F
5BR	$1,891	$426,037	0.44%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 30701 (Calhoun, GA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 30701 in 2026 indicate that a two-bedroom unit is priced at $1,080 per month. This represents 20.3% of the median household income of $63,921. However, the actual rent prices in the area can be significantly higher. The Zillow median price for a two-bedroom rental property is $194,087, which translates to a monthly rent of approximately $1,617 based on a typical mortgage payment formula (assuming a 30-year fixed-rate mortgage at 4.5%). This means the actual rent prices are about 15 times higher than the FMR, creating a significant gap between what voucher holders can afford and the market rate. This disparity places substantial constraints on voucher holders. They would likely struggle to find suitable housing options within their budget, especially for larger units such as three-bedroom ($1,380) and four-bedroom ($1,560) homes. Given the high price-to-FMR ratio, landlords who accept Section 8 vouchers might face challenges in covering their costs if they rely solely on FMR rates. #### Affordability & Renter Profile ZIP code 30701 has a population of 44,691, with 29.6% of residents being renters. The occupancy rate stands at 91.7%, indicating a relatively tight rental market where most available units are occupied. The median household income of $63,921 suggests that many residents have limited financial resources, making affordable housing a critical issue. Given that 20.3% of the median income goes towards a two-bedroom unit at FMR, it is clear that the market is challenging for low-income renters. The high price-to-FMR ratio of 15.0x further exacerbates the affordability problem, as it implies that the average renter would need to pay a much higher percentage of their income to secure a rental property at market rates. This tight market condition could lead to increased competition among renters, potentially driving up rent prices even further. #### Investor Angle From an investor perspective, the ZIP code 30701 presents both opportunities and challenges. The FMR rates are lower than the actual market rates, but the tight rental market suggests that there is demand for rental properties. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical operating expenses and mortgage payments associated with rental properties. Assuming a typical operating expense ratio of 50% of the gross rent, the net rent for a two-bedroom unit at FMR would be $540 ($1,080 * 0.5). If the investor were to purchase a property at the Zillow median price of $194,087, the monthly mortgage payment would be around $908.50 (based on a 30-year fixed-rate mortgage at 4.5%). This leaves a negative cash flow of approximately $368.50 per month ($908.50 - $540), indicating that investing in this ZIP code at FMR rates would not be financially viable without additional subsidies or cost-saving measures. In terms of investment grade, given the high price-to-FMR ratio and the tight rental market, the ZIP code 30701 would likely be considered a moderate to high-risk investment. While there is demand for rental properties, the limited affordability for low-income households could result in higher vacancy rates and difficulty in attracting tenants. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units like one-bedroom apartments. The FMR for a one-bedroom unit is $820, which is still below the market rate but offers a better chance of finding tenants willing to pay the FMR. Additionally, the median income suggests that a one-bedroom unit at FMR would represent about 12.9% of the median income, making it more affordable for low-income renters. 2. **Seek Additional Subsidies**: Investors looking to enter the Calhoun rental market should explore additional subsidies beyond Section 8 vouchers. For instance, they could look into local government programs or other federal assistance schemes that provide additional funding to cover the gap between FMR and market rates. 3. **Consider Property Renovation**: Investing in properties that require renovation can be a strategic move. By purchasing undervalued properties and renovating them to meet modern standards, investors can potentially increase the rental value while still keeping it within the FMR range. This approach can help mitigate the risk of negative cash flow and improve the overall attractiveness of the property to potential tenants. #### Bottom Line Based on the provided data, the recommendation for Section 8-focused investors in ZIP code 30701 is to **skip** this market. The high price-to-FMR ratio and the tight rental market make it difficult to achieve positive cash flow without additional subsidies. Moreover, the limited affordability for low-income households could lead to higher vacancy rates and challenges in tenant acquisition. Investors should consider markets with a more favorable price-to-FMR ratio and less competitive rental environments to ensure a more stable and profitable investment.

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.