Location: Talladega County, AL | Metro: Talladega County, AL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $980 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,290 |
| 5 Bedrooms | $1,496 |
| 6 Bedrooms | $1,676 |
| 7 Bedrooms | $1,810 |
| 8 Bedrooms | $1,901 |
The Section 8 market in ZIP 35149, located in Talladega County, Alabama, presents a unique opportunity for investors. The HUD Fair Market Rent (FMR) for the area is set at $810 per month for a two-bedroom unit in fiscal year 2026. This figure is crucial for understanding the financial dynamics of renting to voucher tenants.
Comparing the HUD FMR to the current market conditions, we find that the median home value in ZIP 35149 is approximately $153,986. This allows us to calculate a rent-to-price ratio, which is essential for evaluating the potential cash flow from rental properties. Given the low median home value, the rent-to-price ratio suggests that properties rented at the HUD FMR can generate positive cash flow, especially when considering the lower property values.
The market rent data for ZIP 35149 is currently unavailable, but the HUD FMR serves as a benchmark for assessing the viability of renting to voucher tenants. At $810 per month for a two-bedroom unit, voucher tenants will cashflow at the HUD FMR without requiring premium units. This indicates that landlords can attract and retain Section 8 tenants effectively while maintaining profitability.
Investors should note that the housing market in 35149 has seen significant fluctuations. In October 2023, home prices were down 62.5% compared to the previous year, selling for a median price of $15,000. This volatility underscores the importance of stability in investment decisions. However, the recent increase in median home values to $153,986 suggests a growing market, which could translate into future appreciation opportunities.
The strongest investor angle in ZIP 35149 is cashflow. With the HUD FMR well-aligned with the low median home values, landlords can expect steady income from Section 8 tenants without the need for premium units. This makes it an attractive option for small-portfolio investors looking for reliable returns.
Data Sources: FMR data from HUD (2027).
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.