Location: Monroe County, GA | Metro: Monroe County, GA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $980 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
The analysis of the Section 8 cap-rate scenario for ZIP code 31004 reveals some key insights into the potential investment opportunities for landlords and small-portfolio investors.
The Fair Market Rent (FMR) for a two-bedroom apartment in ZIP 31004 for fiscal year 2024 is set at an annualized rate of $1010 per month. This figure serves as the baseline rental income that can be expected from tenants participating in the Section 8 program. However, without specific data on the median home value and market rent for this area, it's challenging to provide a precise comparison for the gross yield between Section 8 and market rates.
Given the lack of market rent data, we cannot accurately calculate the gross yield for market-rate properties. Nonetheless, the implied gross yield for Section 8 properties can be estimated using the FMR. Assuming a median home value and applying the standard formula for calculating gross yield (annual rental income divided by property value), investors would need to input their specific property values to determine the exact yield.
The absence of detailed market rent data and median home value for ZIP 31004 means that the gross yield comparison must remain theoretical. However, the Section 8 FMR provides a stable and predictable income stream, which is particularly attractive in areas where renter density is high and days on market (DOM) are low. With the current data indicating a N/A% renter density and a N/A-day DOM, it suggests that the demand for rental properties is strong, making the Section 8 option a reliable choice for steady cash flow.
In conclusion, while the exact gross yield for market-rate rentals cannot be determined without additional data, the Section 8 option offers a clear and consistent income stream based on the $1010 FMR. This scenario is more realistic given the strong rental market indicated by the high renter density and quick turnover of properties, as evidenced by the low DOM figures.
Data Sources: FMR data from HUD (2027).
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.