Location: Hinesville, GA | Metro: Hinesville, GA HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,110 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,690 |
| 4 Bedrooms | $2,130 |
| 5 Bedrooms | $2,471 |
| 6 Bedrooms | $2,768 |
| 7 Bedrooms | $2,989 |
| 8 Bedrooms | $3,138 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 cap-rate scenario for ZIP code 31333 reveals a complex picture due to the lack of specific median home value data. However, we can still provide some insight based on the available information.
First, let's consider the annualized Fair Market Rent (FMR) for a 2-bedroom apartment at $1200 per month, which amounts to an annual income of $14,400. This figure represents the maximum allowable rent that a landlord can charge under the Section 8 program for the fiscal year 2024. Given the median home value is not available, we cannot calculate a precise cap rate. However, we can infer that the gross yield would be relatively low if we were to use typical home values in the area.
In contrast, the market rent for a 2-bedroom apartment stands at $938 per month, according to the Census ACS data, translating into an annual income of $11,256. Again, without the median home value, we cannot derive the exact cap rate, but it suggests a lower gross yield compared to the FMR scenario. This difference highlights the financial trade-offs between accepting Section 8 tenants and renting at market rates.
The implied gross yield for the FMR scenario is higher than that for the market rent scenario. If we assume a typical home value in the area, say $150,000 for illustration purposes (though this is not actual data), the FMR would imply a gross yield of approximately 9.6%, while the market rent would suggest a gross yield of about 7.5%. These figures are indicative and should be adjusted based on the actual median home value in ZIP 31333.
Given the 100.0% renter density, it is evident that there is a high demand for rental properties in this area. The days on market (DOM) being N/A indicates either a very fast turnover or a lack of reliable data, which could mean that properties are rented quickly once listed. This rapid turnover supports the idea that landlords might find it easier to fill vacancies with Section 8 tenants, especially considering the higher FMR compared to market rent.
In conclusion, while the exact cap rate cannot be determined due to missing data, the FMR scenario offers a higher gross yield than the market rent scenario. For landlords and small-portfolio investors, the decision to participate in the Section 8 program should be made after careful consideration of the local housing market dynamics, including vacancy rates and the ease of finding qualified tenants. The higher FMR provides a more stable and predictable income stream, which can be beneficial in managing cash flows and ensuring property occupancy.
Data Sources: FMR data from HUD (2027). 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.