Section 8 Fair Market Rent (FMR) for ZIP 31061 - 2027

Investment Score for ZIP 31061

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	$980
1 Bedroom	$1,050
2 Bedrooms	$1,180
3 Bedrooms	$1,420
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	$143,771	0.82%	C
3BR	$1,420	$242,156	0.59%	F
4BR	$1,560	$378,805	0.41%	F
5BR	$1,810	$556,637	0.33%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 31061 (Milledgeville, GA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 31061, as of 2026, is set at $1130 for a two-bedroom unit, which represents 25.0% of the median household income of $54,263. This indicates that the rent for a two-bedroom unit is relatively affordable compared to the income levels in the area. However, it is important to understand how these FMRs compare to actual rents in the market. According to Zillow, the median price for a two-bedroom home in Milledgeville is $146,427. The price-to-FMR ratio for a two-bedroom unit is 10.8x, suggesting that the purchase price of homes far exceeds their rental value based on FMR. For voucher holders, this means that they are constrained by the FMR limits when seeking housing. If the actual market rent for a two-bedroom unit is higher than $1130, voucher holders would need to find properties willing to accept the voucher at the lower rate, which could be challenging given the high price-to-FMR ratio. #### Affordability & Renter Profile In ZIP code 31061, 40.6% of the population are renters, indicating a significant demand for rental housing. With a median household income of $54,263, affordability is a key concern for many residents. The occupancy rate of 80.9% suggests that the rental market is moderately tight but not overly saturated. There is still room for additional units, but the existing stock is largely occupied. Given the high percentage of renters and the relatively low median income, the market is likely to attract individuals and families who are looking for affordable housing options. The FMRs provide a benchmark for what is considered affordable, but the actual rents in the market could be higher, making it difficult for some renters to find suitable housing without assistance. #### Investor Angle From an investor's perspective, the ZIP code 31061 presents a mixed picture. The FMRs indicate the maximum allowable rent for a property to be eligible under the Section 8 program. For a two-bedroom unit, the FMR is $1130. Given the high price-to-FMR ratio of 10.8x, the purchase cost of a property is significantly higher than its potential rental income under the Section 8 program. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical operating expenses such as mortgage payments, maintenance, insurance, and taxes. Assuming a conservative estimate of operating expenses at 50% of the FMR, the net income would be around $565 per month for a two-bedroom unit. This amount needs to cover the mortgage payment, which can be calculated using the median home price of $146,427. If we assume a 30-year fixed-rate mortgage at an interest rate of 5%, the monthly mortgage payment would be approximately $770. This leaves a shortfall of about $205 per month, indicating that the investment would not be cash-flow positive at the FMR level. The investment grade would therefore be considered low due to the negative cash flow and the high price-to-FMR ratio. #### Specific Actionable Insights 1. **Target Lower-Rent Properties**: Investors should focus on acquiring properties that are priced closer to the FMR levels. For example, a two-bedroom unit priced at $1130 or slightly below would be more attractive for Section 8 tenants and could potentially offer a better cash flow scenario. 2. **Consider Renovation Projects**: Given the high price-to-FMR ratio, investors might find opportunities in older properties that require renovation. By purchasing at a lower price point and increasing the property's value through improvements, they can align the rental income more closely with the FMR while still maintaining a reasonable profit margin. 3. **Negotiate with Landlords**: Since the actual market rents may exceed the FMR, landlords might be hesitant to participate in the Section 8 program. Investors should negotiate with landlords to ensure they are willing to accept the voucher at the FMR rate, possibly offering incentives such as guaranteed tenancy or assistance with paperwork. #### Bottom Line For investors focusing on the Section 8 program in ZIP code 31061, the recommendation is to **skip** this market unless they can find properties priced significantly below the median home price. The high price-to-FMR ratio and the resulting negative cash flow make it less attractive for Section 8-focused investments. Instead, investors should look for areas where the purchase price of properties is more aligned with the FMR, ensuring a positive cash flow and a higher likelihood of participation from both landlords and tenants in the Section 8 program.

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.