Considering whether to rent out your current home with its advantageous low 3% mortgage rate or sell it to purchase a new primary residence in Buford, Flowery Branch, Oakwood, Auburn, Hoschton, Jefferson, or Braselton, GA, involves a multifaceted financial decision.

This blog post delves into comprehensive research findings, providing robust and informative insights to help potential homebuyers or sellers navigate this significant choice.

In this blog, we will be evaluating current rental market dynamics, landlord costs, potential income, and optimal financing strategies.

Understanding the potential rental income your current home could generate is the first step in this equation.

As of September 2025, average single-family rental rates in these North Georgia communities offer a strong baseline for investors. In Buford, average rents hover around $2,379 to $2,397, with a median of $2,300, notably 15.49% higher than the national average. Flowery Branch sees average rents near $2,200, with a median of $2,197, about 6.64% above the national average. Oakwood's average rents range from $1,720 to $2,000, with a median of $1,823. Auburn's homes command $2,150 to $2,300 on average, with a median of $2,165. Hoschton properties average $2,275 to $2,395, with a median of $2,231. Jefferson homes average $2,100 to $2,189, with a median of $2,200. Finally, Braselton offers average rents of $2,195 to $2,388, with a median of $2,275, an impressive 16.49% higher than the national average. These figures underscore the significant income potential available, which is crucial for projecting positive cash flow if you choose to retain your home as a rental.

Beyond current rates, the likelihood of sustained occupancy and long-term rental growth is a critical factor.

The broader Georgia and Metro Atlanta markets are characterized by high demand driven by population growth (projected 1.5% statewide increase and over 60,000 new jobs in Metro Atlanta in 2025) and a housing supply that hasn't kept pace. This sustained demand, coupled with affordability challenges pushing more individuals to rent, creates a resilient environment for landlords. While year-over-year rent changes have shown mixed trends (some slight decreases, others increases, often depending on the reporting source and specific property type), the underlying market fundamentals in these North Georgia cities remain strong. For instance, Auburn boasts a low rental vacancy rate of 5.7% (August 2025), indicating robust demand, while Oakwood and Flowery Branch also exhibit healthy vacancy rates. Buford, Hoschton, Jefferson, and Braselton generally present balanced markets where supply and demand are in equilibrium, further bolstered by ongoing new construction that typically gets absorbed by continued population influx. This strong tenant demand and healthy market balance suggest a high likelihood that your home will stay rented, providing a consistent income stream.

One of the most compelling advantages of retaining your current home as a rental is leveraging your historically low 3% mortgage rate.

With current 30-year fixed mortgage rates in Georgia hovering around 6.55% (September 2025), keeping your existing low-interest loan dramatically reduces your debt service costs, directly enhancing your potential cash flow. This low rate allows you to maximize passive income and accelerate long-term wealth building through two primary avenues: tax benefits and equity growth. As a landlord in Georgia, you can deduct numerous "ordinary and necessary" expenses, including mortgage interest, property taxes, insurance premiums, maintenance, and property management fees. A significant non-cash deduction is depreciation, allowing you to write off a portion of the property's value over 27.5 years, further reducing your taxable income. Georgia also offers a reduced rental income tax rate of 5% for properties rented to individuals and even tax credits for affordable housing initiatives. Concurrently, you benefit from the appreciating Georgia real estate market, which has seen average annual appreciation of 8.8% over the last decade and 10.84% over the past five years. Your tenants' rent payments will also contribute to paying down your mortgage principal, steadily increasing your equity over time.

However, becoming a landlord involves understanding typical operating costs and exploring additional income opportunities to maximize profitability.

(Optional) Property management fees in Georgia generally range from 8% to 12% of the monthly rental income, with additional costs for tenant placement (around 86.5% of one month's rent) and lease renewals. Maintenance costs, often budgeted at 1% of the property's value annually (or around $2,700 for a typical rental house in Metro Atlanta), vary based on property age and condition. Landlord insurance, crucial for protection, costs 15% to 25% more than a standard homeowner's policy, averaging around $926 annually for $300,000-$400,000 dwelling coverage. Property taxes, which are "ad valorem" (based on assessed value), vary significantly by county, with median annual bills ranging from approximately $2,148 in Auburn (Barrow County portion) to $4,556 in Buford (Gwinnett County portion), for example. Beyond rent, landlords can explore additional income by offering services like lawn care, renting out storage space, considering short-term rentals (where regulations permit), or providing furnished properties for higher rates. Effectively managing these costs while exploring these income streams is key to a profitable rental venture.

For those planning to purchase a new primary residence while retaining their existing home as a rental, understanding loan options is paramount.

For your new primary residence, conventional loans are a popular choice, typically requiring 3-20% down and good credit, often allowing 75% of your rental income to help with qualification if you have sufficient equity in your rental and a signed lease. FHA, VA, and USDA loans offer lower or no down payment options for eligible buyers, some even supporting multi-unit purchases if one unit is owner-occupied. When it comes to financing your investment property (your existing home as a rental, or future investment properties), DSCR (Debt Service Coverage Ratio) loans stand out. These loans primarily qualify based on the rental property's cash flow potential (Net Operating Income / Debt Service ratio, typically >1.0, though some offer no minimum DSCR) rather than your personal income. DSCR loan interest rates in Georgia can start from approximately 5.75% to 6.6% (February 2025), with down payments of 15-20%, and often require a minimum FICO score of 620-660. They bypass personal income verification, making them ideal for self-employed individuals or those with complex finances. Other options include conventional loans for investment properties (higher down payment, stricter criteria, 0.5-1% higher rates than primary residence loans), or leveraging existing equity through a cash-out refinance or HELOC to fund your new home's down payment.

I have preferred lenders who can provide and explain all financing options with you!

The decision to rent or sell your current home is deeply personal and financially intricate. From realizing significant rental income potential in thriving North Georgia markets to capitalizing on your low 3% mortgage for enhanced cash flow, tax benefits, and long-term equity, the advantages of retaining can be substantial. However, these benefits must be weighed against the responsibilities and costs of being a landlord, as well as the strategic financing required for your new primary residence.

Don't navigate these complex decisions alone. Connect with me, your local real estate expert, today for personalized, insightful guidance tailored to your specific goals and circumstances. Let's explore your options and create a strategy that secures your financial future.

Direct  706-424-3062

Email   jyoung@northgahomefinders.com