Location: Sumter County, AL | Metro: Sumter County, AL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $700 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,130 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 35477 in Sumter County, Alabama, reveals several key points that are crucial for decision-making. The HUD Fair Market Rent (FMR) for the area is set at $830 per month for FY 2026, which is the benchmark for voucher tenants' rental payments. However, the market rent data for this specific ZIP code is currently unavailable, making it challenging to directly compare the FMR against local rental rates.
Given the absence of market rent data, it's difficult to definitively state whether voucher tenants will cashflow at the FMR, marginally, or only with premium units. Typically, in areas where the FMR is lower than the market rent, voucher tenants would require premium units to break even or generate positive cash flow. Conversely, if the FMR aligns closely with or exceeds market rents, landlords can expect to see better cashflow outcomes without the need for premium units.
The median home value in ZIP 35477 is also not available, which hinders the calculation of a precise rent-to-price ratio. This ratio is important as it helps investors understand the relationship between rental income and property values, indicating potential opportunities for appreciation or stability. Without this information, it's challenging to provide a comprehensive analysis of the long-term investment prospects.
The days on market (DOM) and the percentage of homes that have experienced price cuts are not available, which means we cannot assess the current trend in the housing market. These metrics are critical in understanding the balance between renting and buying, particularly for investors looking to gauge the local real estate market's health and volatility.
In conclusion, despite the limited data, the strongest angle for investors in ZIP 35477 appears to be stability. With the HUD FMR providing a consistent baseline for rental income, investors can rely on steady cashflow from voucher tenants, assuming the FMR is competitive with local market rents. Stability is key in an environment where detailed market data is lacking, ensuring a predictable and reliable source of income.
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.