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 | $1,450 |
| 1 Bedroom | $1,520 |
| 2 Bedrooms | $1,650 |
| 3 Bedrooms | $2,150 |
| 4 Bedrooms | $2,440 |
| 5 Bedrooms | $2,830 |
| 6 Bedrooms | $3,170 |
| 7 Bedrooms | $3,424 |
| 8 Bedrooms | $3,595 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,650 | $212,773 | 0.78% | D |
| 3BR | $2,150 | $296,899 | 0.72% | D |
| 4BR | $2,440 | $534,447 | 0.46% | F |
| 5BR | $2,830 | $935,271 | 0.3% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate picture for ZIP 31406 in Savannah, GA, can be analyzed using the Fair Market Rent (FMR) and the Zillow Observed Rent Index (ZORI) figures. For a two-bedroom apartment, the annualized FMR is $1440 per month, while the ZORI indicates a market rent of $1,643 per month.
To calculate the gross yield based on these figures, we first need to determine the annual rents. The annualized FMR for a two-bedroom unit is $17,280 ($1440 x 12 months), while the annual market rent based on ZORI is $19,716 ($1,643 x 12 months).
Given the median home value of $319,035, the implied gross yield when using the FMR is approximately 5.41%. This is calculated by dividing the annual FMR rent of $17,280 by the median home value of $319,035. On the other hand, the implied gross yield based on the ZORI market rent is about 6.18%, calculated by dividing $19,716 by $319,035.
Evaluating these yields against the local rental market conditions provides further insight into which scenario is more realistic. In ZIP 31406, the renter density stands at 40.3%, indicating a moderate demand for rental properties. Additionally, the days on market (DOM) statistic is 63 days, suggesting that rental units are typically occupied within a reasonable timeframe.
The higher gross yield implied by the ZORI market rent reflects the potential for landlords to charge more than the FMR, especially if there is competition among tenants for available units. However, the actual rent collected under Section 8 will be closer to the FMR, making the 5.41% gross yield a more accurate representation of the program's financial impact on investment properties in this area.
Despite the higher market rent, the reality of Section 8 participation means landlords must adhere to the government-set rates. Therefore, the 5.41% gross yield is the most relevant figure for investors considering Section 8 participation in ZIP 31406. This yield should be factored into any investment decision, alongside the local rental market dynamics and the specific terms of Section 8 contracts.
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.