Location: Long County, GA | Metro: Hinesville, GA HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,210 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,370 |
| 3 Bedrooms | $1,690 |
| 4 Bedrooms | $2,260 |
| 5 Bedrooms | $2,622 |
| 6 Bedrooms | $2,937 |
| 7 Bedrooms | $3,172 |
| 8 Bedrooms | $3,331 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,370 | $146,593 | 0.93% | C |
| 3BR | $1,690 | $262,275 | 0.64% | D |
| 4BR | $2,260 | $307,732 | 0.73% | D |
| 5BR | $2,622 | $366,730 | 0.71% | D |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 31316, which covers Ludowici, GA, is centered around the significant disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1000, whereas the Zillow Rent Index (ZORI) indicates that the average market rent is $1951. This means there is a gap of $951, or approximately 48.7%, between what landlords can charge through Section 8 vouchers and the open-market rental rate.
Given that the FMR is lower than the market rent, it's important to understand the implications for landlords and small-portfolio investors. Housing voucher tenants under Section 8 will pay only a portion of their income towards rent, with the remainder subsidized by the government. In Ludowici, GA, where the median income is $74,766, voucher tenants will contribute about 30% of their adjusted monthly income towards rent. The cost to landlords is that they must accept a lower rental rate than the market allows, effectively capping their revenue at $1000 per unit, despite the market being willing to bear much higher rates.
In the context of Ludowici, GA, with its 29.6% renter population and a median home value of $287,756, the decision to participate in the Section 8 program should be carefully considered. While the program ensures stable, long-term tenancy, the trade-off is accepting a rental rate that is significantly below the open-market price. Landlords must weigh the benefits of guaranteed occupancy against the reduced revenue potential when deciding whether to enroll their properties in the Section 8 program.
To illustrate the financial impact, consider a property that could otherwise rent for $1951 on the open market. By participating in Section 8, the landlord would be foregoing $951 per month, or $11,412 annually, for each unit enrolled. This gap underscores the importance of understanding local market conditions and the specific terms of the Section 8 program before making an investment decision.
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.