Location: Winston County, AL | Metro: Winston County, AL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 35575 for Section 8 purposes, follow this decision tree:
1) Does FMR $800 (metro FY 2026) clear debt service on a $124,033 property?
Yes: The Fair Market Rent (FMR) of $800 is sufficient to cover the debt service on a property valued at $124,033. This means that the rental income from a Section 8 tenant will meet the financial obligations associated with owning the property.
No: If the FMR of $800 does not clear the debt service, purchasing a property in ZIP 35575 strictly for Section 8 tenants would not be financially viable. Consider properties with lower purchase prices or those where the FMR is higher.
It depends: This scenario applies if the debt service amount is close to the FMR. You need to calculate your specific debt service costs, including mortgage payments, taxes, insurance, and maintenance, to see if they align with the $800 FMR.
2) Is market rent $780 (Census ACS) above, at, or below FMR?
Above: If the market rent is above the FMR, at $780, there is potential for non-Section 8 tenants to pay more than the government-subsidized rate. This could lead to higher profitability if the property is not exclusively used for Section 8.
At: If the market rent is exactly at the FMR, then the rental income from both Section 8 and market-rate tenants will be the same. This scenario might still be profitable but without the premium from market-rate rents.
Below: If the market rent is below the FMR, Section 8 tenants will pay more than what the market dictates. This can be advantageous because it ensures a stable income source, protected by federal subsidies, even when market conditions fluctuate.
3) Are 18.3% renters + N/A-day days on market (DOM) enough demand?
Yes: With 18.3% of the population being renters, there is a reasonable demand for rental properties. The lack of specific days on market (DOM) data suggests either low turnover or consistent demand, which can be favorable for long-term investment stability.
No: If the percentage of renters is too low or if the DOM is high, indicating slow turnover, there may not be enough demand to justify an investment in this area. High DOM can also signal difficulty in finding tenants, whether they are Section 8 or market-rate.
It depends: If the 18.3% of renters represents a stable but not booming rental market, the decision hinges on other factors such as the competition, vacancy rates, and the overall economic health of the area. A stable rental market can still be profitable, especially for Section 8 properties which offer guaranteed income.
In conclusion, buying in ZIP 35575 for Section 8 investment is viable if the FMR clears debt service, market rent is at or below FMR, and the rental demand is sufficient. Use the provided data points to make an informed decision based on your specific financial situation and investment goals.
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.