Section 8 Fair Market Rent (FMR) for ZIP 31405 - 2027

Investment Score for ZIP 31405

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,430
1 Bedroom	$1,490
2 Bedrooms	$1,620
3 Bedrooms	$2,110
4 Bedrooms	$2,400
5 Bedrooms	$2,784
6 Bedrooms	$3,118
7 Bedrooms	$3,367
8 Bedrooms	$3,535

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,620	$211,106	0.77%	D
3BR	$2,110	$314,694	0.67%	D
4BR	$2,400	$520,888	0.46%	F
5BR	$2,784	$690,391	0.4%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 31405 (Savannah, GA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 31405 in Savannah, Georgia, is set by HUD for 2026. The FMRs are as follows: - 0BR: $1,430 - 1BR: $1,510 - 2BR: $1,650 (which is 30.1% of the median household income of $65,710) - 3BR: $2,190 - 4BR: $2,500 To understand how these FMRs compare to actual rents, we need to consider the price-to-FMR ratio. For a 2BR unit, the Zillow median price is $214,182, which translates to a price-to-FMR ratio of 10.8x. This means that the median home value is significantly higher than the FMR, indicating that the actual rent for properties in this area could be much higher than the FMR. For voucher holders, the constraints are clear. They can only afford units up to the FMR limit, which is $1,650 for a 2BR unit. However, given the high price-to-FMR ratio, it is likely that many landlords will not accept vouchers due to the limited rent they can charge. This creates a significant challenge for voucher holders who must find affordable housing within the FMR limits. #### Affordability & Renter Profile ZIP code 31405 has a population of 40,764, with 47.9% being renters. The occupancy rate stands at 89.0%, suggesting a relatively tight rental market where demand meets supply closely. Given that 2BR units cost $1,650 according to FMR, which is 30.1% of the median household income, renters are likely to be middle-income individuals or families who are just able to afford the rent. However, the high price-to-FMR ratio of 10.8x indicates that the market is not particularly affordable for those relying on Section 8 vouchers. The median home value is $214,182, which is far beyond what most renters can afford based on their income levels. This suggests that the market is skewed towards homeownership rather than renting, especially for those with limited financial resources. #### Investor Angle From an investor’s perspective, the key question is whether the ZIP code can generate positive cash flow at the FMR. To assess this, we need to look at the potential rental income versus the costs of ownership. Given the FMR for a 2BR unit is $1,650, an investor would need to ensure that the monthly mortgage payment, property taxes, insurance, maintenance, and other expenses do not exceed this amount to achieve positive cash flow. With a median home value of $214,182, the typical mortgage payment for a 2BR unit might be around $1,000-$1,200 per month, depending on the interest rate and loan terms. Adding property taxes (approximately $2,500 annually), insurance ($1,200 annually), and maintenance ($100-$200 per month), the total monthly expenses could range from $1,200 to $1,500. This leaves a small margin for profit, making it challenging to achieve positive cash flow purely through rental income. Moreover, the investment grade for this ZIP code is likely to be moderate to low. The high price-to-FMR ratio and the tight rental market suggest that there is a risk of vacancy if too many landlords refuse to accept vouchers due to the lower rent they can charge. Additionally, the high median home value compared to the median income indicates that the market is not particularly favorable for low-income renters, which is a significant portion of the Section 8 population. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Investors should focus on developing or purchasing smaller units such as 0BR or 1BR apartments. These units have lower FMRs ($1,430 and $1,510 respectively) and are more likely to be accepted by voucher holders. Additionally, smaller units typically have lower acquisition and maintenance costs, making them more financially viable. 2. **Consider Multi-Family Properties**: Multi-family properties can offer economies of scale, reducing the overall cost per unit. A multi-family building with multiple 0BR or 1BR units can provide better cash flow opportunities than single-family homes. For example, a four-unit apartment complex with each unit renting at $1,510 would generate $6,040 in monthly rental income, which is more substantial than a single 2BR unit. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can help secure a steady stream of voucher holders. Housing authorities often have programs to incentivize landlords to accept vouchers, such as expedited processing times or additional subsidies. Engaging with these authorities can mitigate some of the risks associated with lower rental income. #### Bottom Line For Section 8-focused investors, the ZIP code 31405 presents a challenging environment. The high price-to-FMR ratio and the tight rental market make it difficult to achieve positive cash flow solely through rental income. Therefore, the recommendation is to **Skip** this ZIP code for now unless you can find smaller units or multi-family properties that offer better financial viability. If you decide to invest, focus on 0BR or 1BR units and engage with local housing authorities to maximize your chances of success. However, given the current dynamics, it is advisable to explore other markets with more favorable conditions for Section 8 investments.

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.