Location: Montgomery, AL | Metro: Chilton County, AL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $860 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 36006 within the Montgomery, AL MSA reveals a clear disparity between the HUD Fair Market Rent (FMR) and the actual market rent. The HUD FMR for ZIP 36006 in fiscal year 2024 is set at $880, whereas the Census American Community Survey (ACS) indicates a market rent of $1,059. This gap means that landlords accepting Section 8 vouchers will likely experience marginal cash flow at best, unless they focus on premium units that command higher rents.
To further contextualize this, consider the median home value in ZIP 36006, which stands at $233,881. Using this figure, we can derive the rent-to-price ratio. Dividing the market rent ($1,059) by the median home value ($233,881) gives us a ratio of approximately 0.45%. This low ratio suggests that the rental market is less competitive compared to the purchase market, implying that buying homes in this area might be more advantageous for long-term investment.
The dynamics of days on market (DOM) and price-cut shares are not available for this ZIP code, but given the significant difference between the HUD FMR and market rent, it's evident that the primary challenge for Section 8 landlords lies in achieving positive cash flow. However, the stability of the housing market, coupled with the predictability of government-subsidized tenants, offers a strong investment angle. Landlords who can manage their expenses efficiently and find units that align closely with the market rent will benefit from stable, long-term returns.
The strongest investor angle in ZIP 36006 is stability, given the reliable nature of Section 8 tenants and the consistent demand for affordable housing.
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.