Location: Warren County, GA | Metro: Augusta-Richmond County, GA-SC HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 30828 reveals a distinct picture when comparing Federal Market Rent (FMR) and market rent figures. For the fiscal year 2024, the annualized 2-bedroom FMR stands at $920, while the market rent figure, based on the Census ACS, is $714.
To derive the implied gross-yield for both scenarios, we first consider the FMR. With an annualized rent of $920, the implied gross-yield can be calculated as follows: $920 / $124,515 = 0.00738, or approximately 0.74%. This yield represents the potential income generated from a Section 8 rental agreement relative to the median home value in ZIP 30828.
Next, using the market rent figure of $714, the implied gross-yield is $714 / $124,515 = 0.00573, or approximately 0.57%. This calculation reflects the potential income from renting the property at market rates compared to the median home value.
The difference between these yields highlights the financial implications for landlords and small-portfolio investors. The Section 8 scenario offers a slightly higher gross-yield at 0.74%, whereas the market rent scenario provides a lower gross-yield at 0.57%. However, the reality of the rental market in ZIP 30828 must also be considered. Given the 29.7% renter density, it's clear that the majority of homeowners in this area are not renters, suggesting a potentially tighter rental market.
The N/A-day DOM (days on market) indicates that there is insufficient data to determine how quickly properties are rented out, which could mean either strong demand or other factors influencing the rental process. In light of the renter density and the lack of DOM data, the market rent scenario may be more reflective of the actual rental environment in ZIP 30828. Despite the slightly lower gross-yield, landlords might find it easier to fill vacancies with market rate tenants rather than navigating the complexities of Section 8 agreements.
In conclusion, while the Section 8 cap-rate scenario offers a marginally better gross-yield, the market conditions in ZIP 30828 suggest that the market rent scenario is likely more realistic. Investors should weigh the benefits of a higher yield against the challenges of finding and retaining Section 8 tenants.
Data Sources: FMR data from HUD (2027). 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.