Location: Savannah, GA | Metro: Savannah, GA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,500 |
| 1 Bedroom | $1,560 |
| 2 Bedrooms | $1,700 |
| 3 Bedrooms | $2,210 |
| 4 Bedrooms | $2,510 |
| 5 Bedrooms | $2,912 |
| 6 Bedrooms | $3,261 |
| 7 Bedrooms | $3,522 |
| 8 Bedrooms | $3,698 |
The economics of Section 8 housing in ZIP code 31402, located in Savannah County, Georgia, operate under specific guidelines that affect both landlords and tenants. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) is set at $1450 per month for fiscal year 2024. This figure is crucial because it determines the maximum amount that the Housing Choice Voucher program will pay for rent in this particular ZIP code.
To understand how this impacts landlords, let's break down the components of a voucher payment. The total rent is split into two parts: the tenant's portion and the government subsidy. Tenants are generally required to pay 30% of their adjusted income towards rent. If we assume an average adjusted income for a tenant in this scenario, the tenant might contribute approximately $435 per month, based on a hypothetical income of $1450. This contribution is fixed and does not vary based on the actual market rent.
In addition to the tenant's portion, there are utility allowances that can be factored into the overall payment. These allowances vary but typically cover a reasonable estimate of utilities for the property. For simplicity, let's consider a utility allowance of around $300 per month.
This means that for a two-bedroom unit, the voucher would cover a total of $1750 per month when combining the SAFMR ($1450) and the utility allowance ($300). However, since the local market rent is currently listed as N/A, it's important to note that the SAFMR serves as the benchmark for determining the maximum allowable rent.
If the market rent were higher than the SAFMR, the landlord would face a reimbursement gap. Conversely, if the market rent is lower, the landlord could receive more than the market value, creating a surplus. Given the SAFMR of $1450, landlords should ensure their rent pricing aligns closely with this figure to avoid financial shortfalls.
Since the exact local market rent is not provided, we can infer that if the market rent is below $1450, landlords will receive a surplus. If it exceeds $1450, they will have a reimbursement gap. In either case, the voucher system aims to subsidize affordable housing, and landlords must balance their rental rates with the SAFMR to maximize profitability while maintaining compliance with the program.
Data Sources: FMR data from HUD (2027).
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.