Location: DeKalb County, AL | Metro: DeKalb County, AL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $700 |
| 1 Bedroom | $700 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,150 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 35988 is centered around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2026, the FMR stands at $780, while the Census ACS reports the market rent at $691. This creates a gap of $89 per month, or approximately 12.9%.
Given that the FMR exceeds the market rent, landlords and small-portfolio investors can leverage this situation to enhance their rental yields. Voucher tenants, who benefit from the government's Section 8 program, provide a steady stream of income that aligns with the higher FMR. In a market where the average rent is lower than the FMR, accepting voucher tenants ensures that the landlord receives the full FMR amount, thus increasing profitability.
The ZIP code 35988 has a rental population of 35.1%, indicating a significant portion of residents who are likely to be interested in affordable housing options. With a median home value of $195,093 and a median income of $53,684, the economic profile of the area suggests that many residents may rely on assistance programs such as Section 8 to find suitable housing. Landlords should consider the benefits of accepting voucher tenants, as it can lead to higher monthly rents compared to the open-market rates.
However, it is crucial to note that accepting voucher tenants also comes with its own set of considerations. The administrative overhead associated with Section 8, including compliance with HUD regulations and the potential for slower rent payments, must be weighed against the increased rental yield. Despite these factors, the financial advantage of receiving $780 in FMR versus the typical $691 market rent makes ZIP 35988 an attractive location for landlords looking to maximize their returns through the Section 8 program.
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.