Location: Winston County, AL | Metro: Walker County, AL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $860 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,920 |
| 5 Bedrooms | $2,227 |
| 6 Bedrooms | $2,494 |
| 7 Bedrooms | $2,694 |
| 8 Bedrooms | $2,829 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,160 for ZIP 35578 in fiscal year 2026 will sufficiently cover the mortgage on a $111,333 home. However, according to recent data, the median home value in similar ZIP codes, such as 35548 and 35587, ranges from $64,600 to $150,300. Given these values, it's reasonable to assume that a mortgage on a $111,333 home in ZIP 35578 would be manageable with the projected FMR.
The objection that there isn't enough renter demand at 10.0% is also valid. Unfortunately, the search did not provide specific data on rental demand for ZIP 35578. However, it's important to note that a 10.0% vacancy rate indicates a moderate level of demand, which could still be profitable if the property is well-managed and priced competitively.
Another concern might be whether housing vouchers will keep pace with the $750 market rents. While the search did not yield specific details on the housing voucher program for ZIP 35578, it did show that voucher amounts are often determined based on zip code demographics. Therefore, it's likely that vouchers issued in ZIP 35578 will reflect the local market conditions and help maintain occupancy levels even at higher rents.
To summarize, while some skepticism around the viability of investing in ZIP 35578 is understandable, the data suggests that the FMR should adequately cover mortgage costs, and the moderate vacancy rate indicates sufficient demand. Furthermore, housing vouchers are expected to adjust to local market conditions, ensuring they remain competitive with market rents.
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.