Section 8 Fair Market Rent (FMR) for ZIP 30721 - 2027

Investment Score for ZIP 30721

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	$840
1 Bedroom	$960
2 Bedrooms	$1,080
3 Bedrooms	$1,410
4 Bedrooms	$1,810
5 Bedrooms	$2,100
6 Bedrooms	$2,352
7 Bedrooms	$2,540
8 Bedrooms	$2,667

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,080	$202,765	0.53%	F
3BR	$1,410	$250,991	0.56%	F
4BR	$1,810	$292,919	0.62%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 30721 (Dalton, GA) #### Section 8 Voucher Dynamics In ZIP code 30721, the Fair Market Rent (FMR) for a two-bedroom apartment is set at $1100 per month. This amount represents 21.3% of the median household income of $62,094. The FMRs for other bedroom sizes are as follows: $760 for a zero-bedroom unit, $880 for a one-bedroom unit, $1440 for a three-bedroom unit, and $1840 for a four-bedroom unit. However, the actual rental market dynamics suggest that these FMRs do not fully align with the prevailing rents. According to Zillow, the median price for a two-bedroom home in Dalton is $202,571, which translates into a price-to-FMR ratio of 15.3x. This means that the median value of a two-bedroom home is significantly higher than what the FMR suggests, indicating that actual rents could be much higher than the FMRs. For instance, if we assume a typical rent-to-price ratio of around 1%, the implied monthly rent for a two-bedroom home would be approximately $2025. This is nearly double the FMR of $1100, suggesting that voucher holders face significant constraints in finding affordable housing. #### Affordability & Renter Profile The population of Dalton is 53,060, with 34.7% of residents being renters. This indicates a substantial rental market presence, but the high occupancy rate of 95.0% suggests that the market is relatively tight. With a median household income of $62,094, the affordability of housing is a critical issue for many residents, especially those relying on Section 8 vouchers. Given that the FMR for a two-bedroom unit is only 21.3% of the median income, it is clear that the majority of residents can afford housing at the FMR level. However, the disparity between FMR and actual rents implies that many voucher holders may struggle to find suitable accommodation. #### Investor Angle From an investor perspective, the ZIP code 30721 presents a mixed picture when considering cash flow at FMR levels. While the FMRs are lower than the actual rents, they still provide a reasonable basis for investment. A two-bedroom unit at $1100 per month, for example, is well below the implied rent of $2025 based on the median home price. This suggests that there is potential for positive cash flow if investors can secure properties at or below the FMR. However, the investment grade of properties in this area must also consider the broader market conditions. The tight occupancy rate and the high percentage of renters indicate strong demand for rental units, which could support higher rents. On the other hand, the significant gap between FMR and actual rents might make it challenging to attract voucher holders, who are often the target demographic for Section 8-focused investments. #### Specific Actionable Insights 1. **Target Lower-Rent Properties**: Investors should focus on acquiring properties that are priced close to or slightly above the FMR. For instance, a two-bedroom unit priced at $1100-$1300 would likely attract voucher holders while providing a reasonable profit margin. This strategy leverages the strong demand for rental units without overextending beyond the financial reach of voucher holders. 2. **Consider Smaller Units**: Given the high price-to-FMR ratio, smaller units like zero-bedroom and one-bedroom apartments may offer better opportunities for cash flow. These units have FMRs of $760 and $880, respectively, which are much closer to the actual rents implied by the median home price. This could help investors maintain a steady cash flow while still catering to the needs of voucher holders. 3. **Engage with Local Housing Authorities**: To ensure a smoother process for voucher holders, investors should establish relationships with local housing authorities. This can help streamline the application and approval process, reducing the risk of vacancy and ensuring a stable tenant base. #### Bottom Line For Section 8-focused investors, the ZIP code 30721 offers a buy recommendation with caveats. The strong rental market and high occupancy rates indicate robust demand, but the significant gap between FMR and actual rents poses challenges. By targeting properties that are priced near the FMR and focusing on smaller units, investors can achieve positive cash flow while serving the needs of voucher holders. Engaging with local housing authorities will also be crucial to mitigate risks associated with tenant turnover and vacancy. Overall, the market is promising but requires careful selection and management to succeed.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.