Section 8 Fair Market Rent (FMR) for ZIP 35960 - 2027
Location: Cherokee County, AL | Metro: Cherokee County, AL
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $740 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,160 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$52,619
Housing Authorities Serving ZIP 35960
A decision tree for whether to invest in ZIP 35960 (Centre, AL) for Section 8 properties hinges on three key factors: Fair Market Rent (FMR), market rent, and rental demand.
1. Does FMR of $840 cover the debt service on a property valued at $218,957?
- Yes: If the FMR can support the monthly mortgage payment and other expenses, then investing in Centre, AL, is financially viable. For a property priced at $218,957, the typical debt service would be around $1,000 to $1,200 per month depending on interest rates and loan terms. With an FMR of $840, it falls short of covering these costs, indicating that landlords should not rely solely on Section 8 rents to meet their financial obligations.
- No: Given that the FMR is $840, it does not sufficiently cover the debt service for a property costing $218,957. This makes it unwise to purchase in this area if the sole income source is expected to be Section 8 tenants.
2. How does the market rent of $748 compare to the FMR?
- Below FMR: The market rent of $748 is below the FMR of $840, which means that landlords could potentially increase rents to align with FMR levels without losing tenants. However, this also suggests that the local market may not fully support higher rents, making it risky to raise prices significantly.
3. Is the rental demand sufficient with 23.1% renters and N/A-day days on market (DOM)?
- It depends: While 23.1% of residents are renters, the lack of data on days on market (DOM) complicates assessing demand. If the DOM is low, it indicates strong demand; however, without this figure, landlords must consider other factors such as employment stability, population growth, and the overall health of the housing market in Centre, AL. Given the incomplete data, landlords should conduct further research into the local rental market dynamics before deciding to invest.
In conclusion, based on the provided data, purchasing a property in ZIP 35960 purely for Section 8 tenants is not advisable due to the inability of FMR to cover debt service. Landlords must explore additional revenue streams or consider properties with lower purchase prices to ensure profitability. The comparison between market rent and FMR provides an opportunity to adjust rents slightly but cautiously. Rental demand is present but requires more detailed analysis to determine if it is robust enough to support investment.
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.