Location: Early County, GA | Metro: Baker County, GA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $840 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,450 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 39813 provides a clear picture of potential returns for landlords and small-portfolio investors. Based on the Fair Market Rent (FMR) for a 2-bedroom apartment, which is set at $970 annually for fiscal year 2026, the implied gross yield can be calculated. The median home value in the area is $90,104, which serves as the basis for this calculation.
Using the FMR, the annualized rent would be $970 multiplied by 12 months, resulting in $11,640 per year. Dividing this figure by the median home value gives an implied gross yield of approximately 12.92%. This means that if a landlord were to rely solely on the Section 8 FMR, they could expect a yearly return of 12.92% on their investment.
In contrast, using the market rent figure of $833 from the Census ACS data, the annualized rent would be $833 multiplied by 12 months, leading to $9,996 per year. When this amount is divided by the median home value, the implied gross yield drops to about 11.10%. This indicates that under normal market conditions, landlords might anticipate a slightly lower return of 11.10%.
The 36.2% renter density in ZIP 39813 suggests that a significant portion of the population is likely to be interested in rental properties, including those covered by Section 8 vouchers. However, the N/A-day DOM (Days on Market) implies that there is no readily available data on how quickly homes are rented out, which can affect vacancy rates and thus overall yields.
Given these figures, the Section 8 scenario offers a higher gross yield compared to the market rent scenario. This makes it more attractive for landlords who want to ensure a steady income stream. However, the market rent scenario reflects the actual rental environment and is therefore more realistic for most investors. The higher yield from Section 8 rentals must be weighed against the administrative complexities and potential longer-term risks associated with government programs.
To summarize, while the Section 8 cap rate in ZIP 39813 is 12.92%, the market rent cap rate stands at 11.10%. Investors should consider the higher yield from Section 8 vouchers alongside the practicalities of renting in a market where 36.2% of residents are renters, and the lack of data on DOM affects the reliability of vacancy estimates.
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.