Location: Tallapoosa County, AL | Metro: Clay County, AL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 35072 within the Tallapoosa County, AL metro area reveals several key insights. The HUD Fair Market Rent (FMR) for the area is set at $780 for fiscal year 2026, which is slightly above the market rent of $756 based on Census ACS data. This indicates that voucher tenants will generally cashflow at the FMR rate, though only marginally so given the proximity of the two figures. Landlords can expect a slight advantage when renting to voucher holders, but it's essential to consider that the margin is thin and may not cover all expenses in some cases.
The median home value in the area is $143,429. To derive the rent-to-price ratio, we use the market rent figure of $756. This translates to an annual rent of approximately $9,072, leading to a rent-to-price ratio of about 6.3%. This ratio suggests that rental income is modest relative to property values, which could impact the attractiveness of the area for buy-and-hold investors looking for high returns on investment through rental income alone. However, it also implies that the area might be appealing for first-time homebuyers and renters, potentially stabilizing occupancy rates.
Note that the median days on market (DOM) and the percentage of price cuts are not applicable (N/A) in this context. These metrics typically pertain to the sale of homes rather than rentals. Nonetheless, the low rent-to-price ratio can influence the rent-versus-buy decision-making process of potential residents, indirectly affecting the rental market. If residents find buying more attractive due to the low prices, this could lead to fewer rental properties being available, thus supporting higher rents and better cash flow for existing rental properties.
The strongest investor angle in ZIP 35072 is likely stability. Given the marginal cash flow from voucher tenants and the modest rent-to-price ratio, investors should focus on the consistent demand for affordable housing and the predictability of rental income from Section 8 tenants. Stability provides a reliable source of passive income, making it a solid choice for landlords and small-portfolio investors looking for long-term, steady returns.
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.