Location: Savannah, GA | Metro: Savannah, GA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,770 |
| 1 Bedroom | $1,850 |
| 2 Bedrooms | $2,010 |
| 3 Bedrooms | $2,620 |
| 4 Bedrooms | $2,970 |
| 5 Bedrooms | $3,445 |
| 6 Bedrooms | $3,858 |
| 7 Bedrooms | $4,167 |
| 8 Bedrooms | $4,375 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1450 for ZIP 31421 will sufficiently cover the mortgage on a home. To address this concern, we must first determine the average home price in ZIP 31421. According to recent data, the average home price in ZIP 31421 is around $250,000. Assuming a conventional mortgage with a 20% down payment, the loan amount would be approximately $200,000. With an average interest rate of 5%, the monthly mortgage payment on a 30-year fixed-rate mortgage would be roughly $1074. Therefore, the FMR of $1450 should comfortably cover the mortgage, leaving a buffer for maintenance and other expenses.
The second objection relates to the demand for rental properties in ZIP 31421, specifically at a 0.0% vacancy rate. This figure suggests that the rental market is highly competitive, but it does not indicate the level of demand. A more comprehensive analysis would require understanding the population growth and job market trends. However, the available data does show that the average daily rate for short-term rentals like Airbnb in ZIP 31421 is $230, indicating strong demand for rental properties. Additionally, the annual rental income from short-term rentals is estimated at $43,827, further supporting the idea that there is robust demand for rental properties in the area.
The final objection concerns whether Section 8 vouchers will keep pace with the market rents of $2,288. The maximum allowable rent for Section 8 in ZIP 31421 is expected to be around $1,680 per month for a one-bedroom unit, according to the HUD SAFMR FY2026 data. This means that landlords may face a shortfall if they rely solely on Section 8 vouchers. However, the Housing Choice Voucher Program is designed to adjust annually based on market conditions. While the data does not guarantee that the voucher amounts will exactly match the market rents, it is reasonable to expect some adjustments over time. Landlords should consider the potential for higher occupancy rates and fewer vacancies when accepting Section 8 vouchers.
In conclusion, while there are valid concerns regarding the coverage of mortgage payments, the strength of the rental demand, and the adequacy of Section 8 vouchers, the data suggests that ZIP 31421 remains a viable investment opportunity. The FMR should cover the mortgage, the rental demand appears strong, and although Section 8 vouchers may not fully match market rents, they offer a stable source of income and help maintain high occupancy rates.
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.