Location: Brunswick-St. Simons, GA | Metro: Brunswick-St. Simons, GA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $940 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,720 |
| 5 Bedrooms | $1,995 |
| 6 Bedrooms | $2,234 |
| 7 Bedrooms | $2,413 |
| 8 Bedrooms | $2,534 |
U.S. Census Bureau data (2024)
The analysis for ZIP 31542 reveals a significant gap between the HUD Fair Market Rent (FMR) and the actual market rent, which has implications for both landlords and small-portfolio investors. The HUD FMR for ZIP 31542 in fiscal year 2024 is set at $980. In contrast, the Census ACS reports the average market rent at $463. This means there is a gap of $517, or approximately 112%, between the FMR and the market rent.
The discrepancy suggests that voucher tenants in ZIP 31542 can significantly enhance the yield for landlords and investors. Given that only 30.2% of residents are renters, the demand for rental properties is lower compared to owner-occupied units, making it a strategic investment area. With a median home value of $223,501 and a median income of $50,938, the financial landscape supports the idea that rental properties receiving Section 8 vouchers can offer a higher return on investment than those rented at market rates.
The cost of housing voucher tenants below open-market rates is minimal, considering the government covers the substantial portion of the rent. Landlords and investors should understand that while the market rent is lower at $463, the FMR-supported rent ensures a more stable and higher income stream. This stability is crucial in a region where the median income does not necessarily correlate with high market rents.
In summary, the gap between the FMR and market rent in ZIP 31542 makes it a favorable environment for voucher tenants. This plays into a yield strategy for landlords and investors, who can benefit from the government's support without bearing the brunt of the financial burden typical of lower market rents. The combination of low renter percentage, median home values, and median income levels further underscores the potential for successful investments in this ZIP code.
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.