Location: Tallapoosa County, AL | Metro: Montgomery, AL 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 | $740 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,190 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,190 | $227,940 | 0.52% | F |
| 4BR | $1,540 | $643,571 | 0.24% | F |
U.S. Census Bureau data (2024)
In ZIP code 35010, the potential for investment risk through Section 8 housing is multifaceted. Firstly, tenant turnover poses a significant challenge, especially when comparing the market rent of $731 to the Federal Market Rent (FMR) of $880 for FY 2024. Landlords may find that tenants seeking Section 8 assistance often cannot afford the higher FMR, leading to frequent changes in occupancy. This turnover can result in increased costs for screening, advertising, and preparation between tenancies.
Vacancy exposure is another critical concern, with an average Days on Market (DOM) of 58 days. During this period, the property remains unoccupied, meaning landlords do not receive rental income, yet they still incur maintenance and mortgage costs. The deferred-maintenance exposure is also noteworthy, considering the typical home value in the area is $204,789 while the median income is only $51,338. Low-income residents might struggle to cover the costs of maintaining their homes, potentially leaving landlords responsible for additional repairs and upkeep.
Despite these challenges, the high renter share of 29.9% in ZIP 35010 presents an opportunity. High renter density typically correlates with higher demand for housing vouchers, which can stabilize cash flow for landlords. However, it is important to note that voucher demand does not guarantee a steady stream of reliable tenants, nor does it mitigate the risks associated with vacancy and maintenance.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.