Location: Bullock County, AL | Metro: Macon County, AL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,140 |
| 4 Bedrooms | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 36031 reveals some interesting dynamics that could impact investment decisions. To begin, let's consider the annualized Fair Market Rent (FMR) for a 2-bedroom unit, which is set at $850 per month for fiscal year 2026, based on metro area standards. This translates to an annual rental income of $10,200.
Given the median home value is not available, we must rely on other metrics to estimate potential returns. The first scenario assumes a property value based on the typical relationship between home values and rental incomes in similar markets. If we use a conservative multiplier of 100 times the annual rental income, the implied property value would be $1,020,000. With this figure, the implied gross yield for a 2-bedroom unit under Section 8 would be approximately 1%, calculated by dividing the annual rental income ($10,200) by the property value ($1,020,000).
The second scenario involves using the market rent, which is also not available. Without a specific market rent, it's challenging to provide a precise gross yield, but we can infer that if market rents were higher, the gross yield would likely be better than the 1% derived from the FMR scenario. However, the lack of market rent data makes this scenario less reliable for accurate financial projections.
Considering the 0.0% renter density and the fact that the days on market (DOM) is not available, it's clear that the FMR scenario provides a more realistic basis for investment consideration. A gross yield of 1% is low compared to traditional real estate investments, which typically aim for higher yields. However, the stability and security offered by Section 8 tenancy, despite the lower gross yield, may still appeal to certain investors looking for consistent cash flow over potentially higher but riskier returns.
In summary, while the market rent scenario might suggest better returns, the absence of such data makes the FMR-based gross yield of 1% the most reliable figure for assessing potential returns in ZIP code 36031. This low yield underscores the importance of considering non-financial benefits of Section 8 tenancy, such as reduced turnover and vacancy rates, when evaluating investment opportunities in this area.
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.