Location: Marion County, AL | Metro: Franklin County, AL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,280 |
| 5 Bedrooms | $1,485 |
| 6 Bedrooms | $1,663 |
| 7 Bedrooms | $1,796 |
| 8 Bedrooms | $1,886 |
U.S. Census Bureau data (2024)
The analysis for ZIP code 35571 reveals a significant disparity between the Fair Market Rent (FMR) set at $940 for the fiscal year 2026 and the actual market rent of $482, according to recent Census ACS data. This gap stands at $458, representing a 95% difference between what the government deems fair and what the market demands.
In this scenario, where the FMR is greater than the market rent, landlords and small-portfolio investors can leverage the Section 8 program to achieve higher yields on their rental properties. The government's willingness to pay up to $940 per month for a voucher tenant means that landlords can receive rental payments well above the current market rate of $482. This creates an opportunity for increased cash flow and profitability, especially considering the low market rent.
However, it is important to anchor this analysis within the broader context of ZIP 35571. With only 17.8% of residents being renters, the demand for rental properties is relatively low compared to areas with higher percentages of renters. Additionally, the median home value of $190,124 and the median income of $35,750 provide insight into the economic conditions of the area. Despite these factors, the potential for higher yields through Section 8 vouchers remains compelling.
Investors should also consider the administrative and management costs associated with housing voucher tenants. While the government pays a substantial portion of the rent, there are additional expenses such as background checks, credit reports, and ongoing compliance with HUD regulations. These costs must be factored into the overall investment strategy.
In conclusion, the gap between the FMR and the market rent in ZIP 35571 presents a unique opportunity for landlords and small-portfolio investors to maximize their returns through the Section 8 program. By understanding the local economic context and the specific financial benefits of voucher tenants, investors can make informed decisions that lead to increased profitability.
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.