Location: Montgomery, AL | Metro: Montgomery, AL MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $920 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,370 | $274,924 | 0.5% | F |
| 4BR | $1,590 | $333,687 | 0.48% | F |
| 5BR | $1,844 | $428,145 | 0.43% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 36022 reveals a unique blend of yield and stability that positions it as a moderate opportunity for landlords and small-portfolio investors.
The Fair Market Rent (FMR) for ZIP 36022 stands at $1,020 for the fiscal year 2024, matching the current market rate of $1,020. This parity suggests a stable rental environment where landlords can expect consistent rental income without significant fluctuations. The median home value of $292,383 provides a benchmark for property investment costs, indicating a moderate price point relative to rental yields.
The rental yield in this ZIP code is directly influenced by the FMR and market rates. Given that the FMR and market rates are equal, landlords can anticipate a steady cash flow without the risk of overpricing their properties. However, the relatively low percentage of renters at 10.0% implies limited demand, which could affect occupancy rates and, consequently, the overall yield.
Stability is another critical factor for investors. With a median household income of $89,459, tenants in ZIP 36022 have a higher capacity to pay rent, reducing the likelihood of default. Unfortunately, the lack of data on the number of days on market (DOM) makes it challenging to assess the ease of finding tenants or the frequency of turnover, which are key indicators of stability.
Based on these figures, ZIP 36022 leans towards being a steady-cashflow zone rather than a high-yield/low-stability market. The alignment of FMR and market rates ensures predictability in rental income, while the substantial median income supports tenant reliability. However, the low rental population percentage may limit the potential for rapid property flipping due to lower demand and possibly longer vacancy periods.
To summarize, the rental market in ZIP 36022 offers a balanced approach, favoring long-term investments over quick flips. Landlords should focus on properties that generate reliable income, leveraging the stable rental rates and robust local economy.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.