Location: Jackson County, AL | Metro: Jackson County, AL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $880 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,830 |
| 5 Bedrooms | $2,123 |
| 6 Bedrooms | $2,378 |
| 7 Bedrooms | $2,568 |
| 8 Bedrooms | $2,696 |
U.S. Census Bureau data (2024)
The analysis of the Section 8 real estate market in ZIP code 35745 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2026, the FMR stands at $1,010. However, recent searches indicate that the average market rent in ZIP 35745 is approximately $825. This means the FMR exceeds the market rent by $185, or roughly 22%.
In this scenario, where the FMR is higher than the market rent, properties in ZIP 35745 become attractive for landlords and small-portfolio investors due to the potential for higher yields. Voucher tenants under the Section 8 program can help stabilize cash flow and provide a reliable source of income that is often above what the open market would offer.
The ZIP code's demographic context further supports this analysis. With 46.8% of residents being renters, the demand for affordable housing is evident. The median income of $33,945 suggests that many households rely on government assistance to afford housing. Despite the lack of specific median home value data, the overall economic profile indicates a strong need for subsidized housing options.
Landlords should be aware of the benefits and challenges associated with Section 8 tenancy. While the higher FMR can lead to better financial returns, managing voucher tenants requires compliance with federal guidelines and potential scrutiny from housing authorities. Nonetheless, the yield advantage makes Section 8 properties in ZIP 35745 a compelling investment opportunity.
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.