Location: Greene County, AL | Metro: Greene County, AL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,360 |
| 5 Bedrooms | $1,578 |
| 6 Bedrooms | $1,767 |
| 7 Bedrooms | $1,908 |
| 8 Bedrooms | $2,003 |
U.S. Census Bureau data (2024)
A decision tree for whether to invest in ZIP 35443 for Section 8 properties involves three key steps.
Step 1: Determine if the Fair Market Rent (FMR) of $980 can cover the debt service on a property valued at $114,758. This requires calculating the expected monthly mortgage payment plus other fixed costs. For a typical 30-year mortgage rate around 6%, the principal and interest payment would be approximately $687 per month. Adding property taxes, insurance, and maintenance costs, let's assume an additional $300. The total debt service would be roughly $987 per month. Given that the FMR is $980, it does not fully cover the debt service, resulting in a No to this step. However, if the mortgage rate is lower or the property value is less, this could change.
Step 2: Compare the market rent of $501 against the FMR. Since the market rent is below the FMR, landlords can potentially charge closer to the FMR, which is $980, for Section 8 tenants. This means that if the property is leased to Section 8 tenants, the rental income will likely exceed the market rent, leading to a Yes for this step. It's important to note that charging the FMR is subject to local housing authority regulations and tenant eligibility.
Step 3: Assess the demand. With 30.1% of residents being renters, there is a significant portion of the population that might be interested in Section 8 housing. However, the lack of data on days on the market (DOM) makes it difficult to gauge how quickly properties are rented out. Without this information, the answer to this step is It Depends. Landlords need to consider other factors such as the availability of Section 8 vouchers, the number of eligible applicants, and the competition from other Section 8 properties in the area.
If the first step results in a No, but the second step is a Yes, landlords must carefully weigh their options. They should only proceed if they can secure a property at a lower price or if they are willing to subsidize the difference between the FMR and debt service. If the third step is also a No, due to low demand or high competition, then investing in ZIP 35443 would not be advisable.
The decision to buy in ZIP 35443 for Section 8 investment hinges on these factors. If the FMR does not cover debt service, the investment is not viable. If market rent is below FMR, the potential exists to leverage higher Section 8 rents. Demand needs to be assessed further, but the presence of a sizable renter population is a positive sign.
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.