Location: Crenshaw County, AL | Metro: Covington County, AL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,140 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
U.S. Census Bureau data (2024)
In ZIP code 36028, the economics of Section 8 housing involve understanding the difference between the Subsidy Allocation Fair Market Rent (SAFMR) and the actual local market rents. For a two-bedroom apartment in this ZIP code, the SAFMR for fiscal year 2026 is set at $780. This figure represents the maximum amount that a landlord can receive from the housing authority for a Section 8 rental agreement.
However, the local market rent for a similar two-bedroom unit is lower, at $626 according to the latest Census American Community Survey (ACS) data. This discrepancy is important because it affects the reimbursement process for landlords. When a tenant uses a Section 8 voucher, they are responsible for paying a portion of the rent based on their income, typically around 30% of their adjusted monthly income. The remaining balance up to the SAFMR of $780 is covered by the housing authority.
To walk a landlord through the specifics, consider the following example. If a tenant's income dictates a payment of $200 towards the rent, the housing authority will cover the rest of the SAFMR up to $780. Thus, the landlord would receive $580 from the housing authority, plus any utility allowances. These utility allowances are separate payments made by the housing authority to cover the tenant's energy costs, which do not affect the total rent but can be an additional source of income for the landlord.
The typical reimbursement gap or surplus in ZIP 36028 for a two-bedroom unit is a surplus. Given the local market rent is $626, if the landlord charges the SAFMR of $780, the landlord receives a higher amount than the average local rent. This means that even after accounting for the tenant’s portion and utility allowances, the landlord still ends up receiving more than the typical market rent for the area. Therefore, the surplus for a landlord accepting a Section 8 voucher for a two-bedroom unit in ZIP 36028 is approximately $154 per month, assuming the tenant pays $200 and the housing authority covers the rest up to $780.
This surplus is beneficial for landlords as it provides a cushion against potential shortfalls in rent and helps maintain competitive rates for property upkeep and management costs. It also ensures that landlords in ZIP 36028 are not disadvantaged when compared to market rates, making participation in the Section 8 program financially viable.
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.