Location: Coffee County, GA | Metro: Coffee County, GA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $700 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 31533 revolves around the significant disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2026, the FMR is set at $970, while the Census ACS data indicates that the current market rent stands at $672. This results in a gap of $298, which represents an increase of approximately 44% from the market rent to the FMR.
In this scenario where the FMR exceeds the market rent, the potential for a yield play becomes evident. Landlords and small-portfolio investors can capitalize on the higher subsidy payments offered through the Section 8 program. By renting properties at the FMR, they can achieve better cash flow and higher returns on investment compared to the lower market rent.
The zip code's demographic context supports this strategy. With 49.3% of residents being renters, there is a substantial demand for affordable housing. The median home value of $160,667 suggests a middle-income area, where many households rely on rental assistance programs to find suitable accommodation. Additionally, the median income of $42,802 aligns with the need for financial aid to cover housing costs.
However, it is crucial to consider the implications of accepting housing voucher tenants at rates below the open-market value. While the Section 8 program provides a guaranteed source of income and reduces vacancy risks, landlords must be aware of the administrative requirements and potential limitations on rent increases. Despite these considerations, the financial support from the government helps offset the difference between the market rent and the FMR, making it a viable option for maximizing yields in ZIP 31533.
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.