Section 8 Fair Market Rent (FMR) for ZIP 30736 - 2027

Investment Score for ZIP 30736

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	$1,040
1 Bedroom	$1,080
2 Bedrooms	$1,180
3 Bedrooms	$1,460
4 Bedrooms	$1,560
5 Bedrooms	$1,810
6 Bedrooms	$2,027
7 Bedrooms	$2,189
8 Bedrooms	$2,298

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	$1,180	$235,289	0.5%	F
3BR	$1,460	$309,532	0.47%	F
4BR	$1,560	$405,295	0.38%	F
5BR	$1,810	$543,399	0.33%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 30736 (Ringgold, GA) #### Section 8 Voucher Dynamics In ZIP code 30736, the Fair Market Rent (FMR) for a two-bedroom unit is set at $1250 per month. This figure represents 17.9% of the median household income of $83,821, indicating that it is a reasonable rent amount relative to local incomes. However, the actual rental market in Ringgold, GA, is significantly higher. The Zillow median price for a two-bedroom property is $229,357, which translates to a monthly mortgage payment well above the FMR when considering typical financing terms. For instance, if we assume a 30-year fixed-rate mortgage at a 4% interest rate, the monthly payment on a $229,357 property would be approximately $1100 just for principal and interest, without factoring in property taxes, insurance, and maintenance costs. Therefore, landlords who accept Section 8 vouchers must be willing to rent their properties below market rates, which can be a significant deterrent. The constraints for voucher holders are clear: they have limited options to find housing that meets both the size and rent requirements of their vouchers. Given that the occupancy rate is 94.7%, there is little room for vacancy, meaning that voucher holders might struggle to find suitable housing. Additionally, the low renter percentage of 16.6% suggests that the majority of residents own their homes, further limiting the pool of available rental units. #### Affordability & Renter Profile The median household income in Ringgold, GA, is $83,821, which places it above the national average. With a renter percentage of only 16.6%, the rental market is relatively small compared to the overall population. This indicates that the area is predominantly owner-occupied, which could suggest a tight rental market where competition among renters is high. The occupancy rate of 94.7% supports this notion, as it implies that most available units are quickly filled. Given the high median household income and the relatively low renter percentage, the typical renter in this area is likely to be someone who cannot afford to purchase a home but still has a decent income. This demographic might include young professionals, recent graduates, or families looking for short-term housing solutions. The affordability of rental units at the FMR level is quite good, as $1250 for a two-bedroom unit is only 17.9% of the median income. However, the actual rental prices are much higher, making it challenging for those with lower incomes to find affordable housing. #### Investor Angle From an investor perspective, the ZIP code 30736 presents a mixed picture. The FMR for a two-bedroom unit is $1250, but the actual median price for such a unit is $229,357, leading to a price-to-FMR ratio of 15.3x. This means that the cost of purchasing a rental property is extremely high relative to the rent that can be charged under the Section 8 program. To illustrate, a $229,357 property financed with a 30-year fixed-rate mortgage at 4% would have a monthly mortgage payment of about $1100. Adding property taxes, insurance, and maintenance costs, the total monthly expenses could easily exceed $1250, making it difficult to achieve positive cash flow. Moreover, the high occupancy rate and low renter percentage indicate that the rental market is tight, which could lead to difficulty in finding tenants willing to accept the lower rent offered by the Section 8 program. Investors should also consider the administrative burden and potential delays associated with the Section 8 program, which can further impact profitability. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors might want to focus on smaller units such as one-bedroom apartments. The FMR for a one-bedroom unit is $1130, which is still significantly below the median home value. This could provide a better opportunity for positive cash flow, especially if the investor can find a property priced closer to the FMR. 2. **Consider Non-Owner Occupied Neighborhoods**: Since the majority of residents in Ringgold, GA, are homeowners, investors should look for areas within the ZIP code that have a higher concentration of renters. These neighborhoods might offer more opportunities to find tenants willing to participate in the Section 8 program. #### Bottom Line Based on the provided data, the recommendation for Section 8-focused investors in ZIP code 30736 is to **skip** this market. The extremely high price-to-FMR ratio makes it challenging to achieve positive cash flow, and the tight rental market with a low renter percentage suggests that finding tenants willing to accept Section 8 vouchers could be difficult. Investors looking for more favorable conditions should consider other ZIP codes with a higher renter percentage and a more balanced price-to-FMR ratio.

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.