Location: Columbus, GA | Metro: Columbus, GA-AL HUD Metro FMR Area
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 | $1,020 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,210 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,870 |
| 5 Bedrooms | $2,169 |
| 6 Bedrooms | $2,429 |
| 7 Bedrooms | $2,623 |
| 8 Bedrooms | $2,754 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,210 | $272,698 | 0.44% | F |
| 3BR | $1,610 | $336,893 | 0.48% | F |
| 4BR | $1,870 | $439,962 | 0.43% | F |
| 5BR | $2,169 | $510,208 | 0.43% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 31811 in Hamilton, Georgia, reveals some interesting insights into the potential returns for landlords and small-portfolio investors.
The Fair Market Rent (FMR) for a two-bedroom apartment in ZIP 31811 for fiscal year 2024 is set at $1220 per month. Annualizing this figure gives us an annual rental income of $14,640. Given the median home value in the area is $385,192, this implies a gross yield of approximately 3.8%. This calculation is based on the assumption that the median home value represents the typical investment property cost in the area.
In contrast, the market rent for a two-bedroom apartment in the same ZIP code, according to the Census ACS, is $984 per month. When annualized, this translates to an annual rental income of $11,808. Using the same median home value of $385,192, this scenario suggests a gross yield of about 3.1%. The lower market rent reflects a more competitive local housing environment where tenants have options beyond Section 8 subsidies.
The implied gross yields of 3.8% for the FMR scenario and 3.1% for the market rent scenario highlight the difference in potential returns between Section 8 properties and those rented at market rates. However, considering the renter density of 13.2%, it's important to note that the pool of potential Section 8 tenants is relatively small compared to the overall housing market. This could affect the stability and occupancy rate of Section 8 properties, making the higher gross yield less certain.
The N/A-day Days on Market (DOM) indicates that there might be limited data on how quickly rental units turn over in the area, which can impact cash flow and maintenance costs. Landlords should be prepared for longer vacancy periods, especially if they rely solely on Section 8 tenants, which could further reduce the effective gross yield.
In conclusion, while the Section 8 program offers a guaranteed gross yield of 3.8%, the reality of the local rental market, with its lower renter density and competitive pricing, suggests that the actual yield might be closer to the market rent scenario of 3.1%. Investors should carefully consider these factors when evaluating the potential profitability of properties in ZIP 31811.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.