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 | $1,460 |
| 1 Bedroom | $1,520 |
| 2 Bedrooms | $1,660 |
| 3 Bedrooms | $2,160 |
| 4 Bedrooms | $2,460 |
| 5 Bedrooms | $2,854 |
| 6 Bedrooms | $3,196 |
| 7 Bedrooms | $3,452 |
| 8 Bedrooms | $3,625 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,660 | $478,887 | 0.35% | F |
| 3BR | $2,160 | $671,535 | 0.32% | F |
| 4BR | $2,460 | $924,839 | 0.27% | F |
| 5BR | $2,854 | $1,212,300 | 0.24% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 31328, located in Tybee Island, Georgia, revolves around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 31328 in fiscal year 2024 is set at $1550, while the Census ACS data indicates that the average market rent is $1665. This creates a gap of $115, or approximately 7.5%, between what landlords can charge and what the government deems as fair market rent.
In Tybee Island, where only 11.2% of residents are renters and the median home value stands at $626,224, the rental market is relatively small compared to the overall housing market. Additionally, the median household income is $109,631, which is significantly higher than the national average. These factors contribute to a situation where landlords might be inclined to accept Section 8 tenants, but they must also consider the financial implications.
Given that the FMR is lower than the market rent, accepting Section 8 tenants means that landlords will receive less income per unit than they could from open-market renters. This scenario can lead to reduced cash flow and potentially lower investment yields. Landlords should carefully evaluate their costs, including maintenance and vacancy rates, to ensure that renting below market rates does not erode profit margins.
Despite the lower FMR, there are strategic advantages to accepting Section 8 tenants. The stable income provided by the government-backed vouchers can offer a reliable source of rental payments, reducing the risk of vacancies and non-payment. Moreover, the long-term nature of these contracts can provide a predictable revenue stream, beneficial for those looking to generate consistent returns over time.
To summarize, the gap between the FMR and market rent in ZIP 31328 presents both challenges and opportunities for landlords. While it may result in a lower immediate yield, the stability and predictability offered by Section 8 vouchers can be advantageous in a high-value, low-renter area such as Tybee Island.
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.