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 | $1,350 |
| 1 Bedroom | $1,410 |
| 2 Bedrooms | $1,530 |
| 3 Bedrooms | $2,020 |
| 4 Bedrooms | $2,300 |
| 5 Bedrooms | $2,668 |
| 6 Bedrooms | $2,988 |
| 7 Bedrooms | $3,227 |
| 8 Bedrooms | $3,388 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,530 | $206,404 | 0.74% | D |
| 3BR | $2,020 | $256,476 | 0.79% | D |
| 4BR | $2,300 | $337,958 | 0.68% | D |
| 5BR | $2,668 | $446,297 | 0.6% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering investing in ZIP 31404, Savannah, GA, might raise several valid concerns regarding the financial feasibility of renting properties under the Section 8 program. Let's address these objections directly using available data.
Will FMR $1360 (zip FY 2024) cover the mortgage on a $254,642 home?
The Fair Market Rent (FMR) for ZIP 31404 in fiscal year 2024 is set at $1360 per month. To determine if this covers the mortgage on a $254,642 home, we need to consider the typical mortgage rates and terms. Assuming a 30-year fixed-rate mortgage at an average rate of 4%, the monthly payment on a $254,642 home would be approximately $1230. This means that the FMR of $1360 does indeed cover the mortgage payment, leaving a buffer of $130 per month for other expenses such as property taxes, insurance, and maintenance. However, it's important to note that property taxes and insurance can vary significantly, and these should be factored into the overall budgeting process.
Is there enough renter demand at 49.8%?
The percentage of renter-occupied housing units in ZIP 31404 is 49.8%. While this figure is close to 50%, it indicates a significant portion of the population is willing to rent, which is positive for rental demand. However, the success of rental investments also depends on the overall economic conditions, job availability, and demographic trends. A 49.8% rental rate suggests a competitive market but not necessarily a saturated one. Investors should look into local employment trends and population growth to gauge future demand.
Will vouchers keep pace with $1,718 market rents?
The current market rent in ZIP 31404 is $1,718 per month, which is higher than the FMR of $1360. The question then becomes whether the Housing Choice Voucher Program will adjust to meet these higher market rents. Historically, voucher amounts have not always kept up with market rent increases, especially in areas with rising costs. It's critical for investors to monitor the local HUD office announcements and updates regarding voucher amounts. If the voucher amount remains below the market rent, landlords may face a shortfall unless they can secure non-voucher tenants willing to pay the difference between the voucher amount and the market rent.
In conclusion, while the FMR does cover the mortgage on a $254,642 home, the margin is slim and requires careful management of additional expenses. The renter demand at 49.8% is substantial but needs to be evaluated alongside broader economic factors. Lastly, the potential mismatch between voucher amounts and market rents presents a risk that must be monitored closely. These insights provide a balanced view of the investment landscape in ZIP 31404.
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.