Location: Talladega County, AL | Metro: Talladega County, AL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,260 |
| 5 Bedrooms | $1,462 |
| 6 Bedrooms | $1,637 |
| 7 Bedrooms | $1,768 |
| 8 Bedrooms | $1,856 |
U.S. Census Bureau data (2024)
In evaluating the investment risk of becoming a Section 8 landlord in ZIP code 35032, several factors must be considered that could negatively impact your investment. Firstly, tenant turnover is a significant concern due to the discrepancy between the market rent and the Fair Market Rent (FMR) set at $780 for fiscal year 2026, which may not cover the actual costs of maintaining a rental property. This can lead to frequent changes in tenants, which in turn can increase the administrative burden and reduce the stability of rental income.
Vacancy exposure is another critical issue, especially since the days on market (DOM) for properties in this area is not available. A higher DOM indicates a longer period of time when the property might remain vacant, leading to lost rental income. Given the limited information on DOM, it's prudent to assume that there could be periods where finding a tenant quickly is challenging, thus increasing the risk of vacancy.
The deferred-maintenance exposure is substantial in ZIP 35032, considering the median income of $30,156. The lack of data on the typical home value suggests that homeowners might struggle to afford necessary repairs and maintenance, which could affect the overall condition of rental properties in the area. This can result in higher-than-average maintenance costs and potential safety issues, both of which are detrimental to the long-term health of your investment.
However, these risks are somewhat mitigated by the high renter share of 25.8%. In areas with a large proportion of renters, there tends to be a higher demand for housing vouchers, which can provide a steady stream of tenants willing to pay the government-subsidized rate. This ensures that even if market rents are higher, there will still be a pool of potential residents who can occupy your property at the FMR rate.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.