Location: Valdosta, GA | Metro: Valdosta, 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 | $830 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,430 | $238,554 | 0.6% | F |
| 4BR | $1,730 | $390,618 | 0.44% | F |
U.S. Census Bureau data (2024)
The analysis for ZIP code 31606 reveals a significant gap between the Fair Market Rent (FMR) set by the U.S. Department of Housing and Urban Development and the actual market rent based on Census ACS data. The FMR for ZIP 31606 in fiscal year 2024 is $1010, while the market rent stands at $744. This means the FMR is $266 higher than the market rent, representing an increase of approximately 35.7%.
In this context, where the FMR exceeds the market rent, accepting Section 8 tenants can be a strategic yield play for landlords and small-portfolio investors. Given that only 15.1% of residents are renters, the demand for rental properties is relatively low, which makes the guaranteed payment from the government attractive. The median home value of $232,934 and the median income of $50,303 indicate that the area is moderately priced, with a middle-income demographic that benefits from the subsidy.
Landlords who take on Section 8 tenants receive a fixed amount from the government, which covers the rent agreed upon in the lease, up to the FMR limit. Since the FMR is higher than the market rent, landlords can charge closer to the FMR rate without risking non-payment. This scenario provides a buffer against potential financial losses due to vacancy rates and ensures a steady cash flow. However, it also comes with the administrative burden of dealing with the government program and the requirement to adhere to specific property standards.
Despite these considerations, the financial advantage of renting to voucher holders at a rate above the market average can outweigh the costs. Landlords should be aware that the tenant selection process involves background checks and income verification through the local housing authority, ensuring that the tenants are likely to be reliable and financially stable within the parameters of their subsidy.
To summarize, the gap between FMR and market rent in ZIP 31606 presents an opportunity for landlords to achieve a higher yield by participating in the Section 8 program. This strategy leverages the government's willingness to pay up to $1010, despite the typical market rate being $744, to ensure profitability and stability in rental income.
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.