Location: Savannah, GA | Metro: Savannah, GA MSA
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 | $1,740 |
| 1 Bedroom | $1,810 |
| 2 Bedrooms | $1,970 |
| 3 Bedrooms | $2,560 |
| 4 Bedrooms | $2,910 |
| 5 Bedrooms | $3,376 |
| 6 Bedrooms | $3,781 |
| 7 Bedrooms | $4,083 |
| 8 Bedrooms | $4,287 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,970 | $236,439 | 0.83% | C |
| 3BR | $2,560 | $304,308 | 0.84% | C |
| 4BR | $2,910 | $379,318 | 0.77% | D |
| 5BR | $3,376 | $438,412 | 0.77% | D |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 31322, Pooler, GA, reveals a detailed financial landscape that can inform investment decisions. The Fair Market Rent (FMR) for a 2-bedroom unit in this area is set at $1670 annually for the fiscal year 2024. Using this figure, the implied gross yield for a property under the Section 8 program would be approximately 0.48%, calculated by dividing the annual rent ($1670) by the median home value ($344,653).
In contrast, the Zillow Observed Rent Index (ZORI) indicates a market rent of $1,753 for a similar 2-bedroom unit. This translates into an implied gross yield of about 0.51% when compared against the median home value. These figures provide a direct comparison between the two rental scenarios, showing that the market rent offers a slightly higher gross yield.
Given the 38.5% renter density in Pooler, it's clear that there is a substantial demand for rental properties. Additionally, the days-on-market (DOM) statistic of 59 days suggests that properties are rented out relatively quickly, indicating a healthy rental market. However, the reality of Section 8 participation must also be considered. While the FMR provides a stable income stream, it is typically lower than market rents due to government-set limits. Therefore, the market rent scenario, with its higher gross yield, appears more realistic for most investors aiming to maximize returns.
It's important to note that these calculations represent only the gross yield and do not account for operating expenses, vacancy rates, or other factors that could impact net operating income (NOI). Investors should conduct thorough analyses considering all relevant costs and market conditions before making any investment decisions. Despite the slight advantage in gross yield offered by market rents, the security and predictability of Section 8 tenancy can still be attractive to certain investors, especially those with experience in navigating the program's requirements.
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.