Location: Pickens County, AL | Metro: Pickens County, AL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,320 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 35447 are straightforward when you understand the key components involved. For a two-bedroom rental unit, the SAFMR (Small Area Fair Market Rent) for FY 2024 is set at $900. This figure represents the maximum amount that the Housing Choice Voucher program will pay for rent in this specific ZIP code. It's important to note that the local market rent, according to the Census ACS, is currently at $820.
A voucher payment to a landlord consists of two parts: the subsidy paid by the government and the tenant's contribution towards rent. The tenant is generally required to pay 30% of their adjusted income towards rent. If we assume an average adjusted income for a tenant in this scenario, the tenant would contribute approximately $270 towards the rent. This leaves the government to cover the remaining balance up to the SAFMR.
For a two-bedroom unit priced at $900, the government would subsidize the difference between the tenant's contribution and the SAFMR. Therefore, if the tenant contributes $270, the government would pay the landlord $630. However, this calculation does not yet account for utility allowances. Utility allowances are additional funds provided to cover the cost of utilities such as electricity, gas, water, and sewage. These allowances vary but typically add around $200-$300 to the total reimbursement.
In ZIP 35447, if we consider a conservative utility allowance of $250, the total reimbursement to the landlord would be $880. This amount is calculated by adding the tenant's contribution ($270) to the government subsidy ($630), and then adding the utility allowance ($250).
Given that the local market rent is $820, landlords in ZIP 35447 who participate in the Section 8 program can expect a surplus on their two-bedroom units. In this case, the surplus would be $60, which is the difference between the total reimbursement of $880 and the local market rent of $820.
To summarize, in ZIP 35447, the Section 8 reimbursement for a two-bedroom unit will likely exceed the local market rent, providing a small surplus for landlords. This makes participating in the Section 8 program financially viable for landlords and small-portfolio investors, as they receive a steady, government-backed income that is slightly above the current market rates.
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.