Location: Randolph County, GA | Metro: Calhoun County, GA
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 | $760 |
| 1 Bedroom | $770 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $77,799 | 1.29% | A |
| 3BR | $1,220 | $126,551 | 0.96% | C |
| 4BR | $1,450 | $194,677 | 0.74% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 39840 in Georgia reveals an interesting investment landscape. The Federal Market Rent (FMR) for a two-bedroom apartment in this area, based on fiscal year 2026 data, is set at $1,010 annually. This translates into a monthly rental rate of approximately $84.17. Against the median home value of $88,529, this implies a gross yield of about 10.64%. To calculate this, we take the annual rental income ($1,010) and divide it by the median home value ($88,529).
In contrast, the market rent for a similar property, according to Census ACS data, stands at $561 annually. This results in a monthly rental rate of roughly $46.75, leading to a significantly lower gross yield of around 6.33%. The calculation here involves dividing the annual market rent ($561) by the median home value ($88,529).
The difference between these two yields highlights the potential benefits and risks associated with Section 8 properties versus market-rate rentals. Given that 53.9% of the population in ZIP 39840 are renters, there is substantial demand for affordable housing options. However, the N/A-day DOM (Days on Market) suggests either incomplete data or a unique rental market dynamic where vacancy periods are either exceptionally short or long, depending on the context.
Considering the higher gross yield offered by the Section 8 scenario, it presents a more attractive investment opportunity compared to the market-rate rental scenario. However, investors must weigh this higher yield against the administrative complexities and potential risks associated with participating in the Section 8 program. The 10.64% gross yield from Section 8 is nearly double the 6.33% from market rates, making it a compelling choice for those willing to navigate the program's requirements.
Ultimately, the decision hinges on individual investor preferences and risk tolerance. For those who prioritize steady, government-backed rental income, the Section 8 option with its higher gross yield is likely more appealing. Conversely, investors who prefer less bureaucratic involvement might find the market-rate rental scenario, despite its lower yield, more suitable.
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.