Location: Crenshaw County, AL | Metro: Montgomery, AL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,180 |
| 4 Bedrooms | $1,360 |
| 5 Bedrooms | $1,578 |
| 6 Bedrooms | $1,767 |
| 7 Bedrooms | $1,908 |
| 8 Bedrooms | $2,003 |
U.S. Census Bureau data (2024)
ZIP 36032, located in Crenshaw County, Alabama, presents itself as an ideal cash-flow anchor within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for the area in fiscal year 2024 is set at $880, which significantly exceeds the average market rent of $484. This spread indicates a strong potential for steady cash flow.
The median home value in ZIP 36032 is $135,866, suggesting that property acquisition costs are relatively low compared to other regions. Landlords can secure properties at affordable prices and benefit from the higher rental payments guaranteed by the Section 8 program. This makes ZIP 36032 particularly attractive for small-portfolio investors looking to stabilize their income streams without the risk associated with volatile markets.
While appreciation plays and diversifiers have their merits, ZIP 36032's characteristics align more closely with the cash-flow anchor strategy. With a median income of $35,256, the area has a substantial portion of renters eligible for Section 8 assistance, making up 25.9% of the total housing market. This high percentage ensures a stable demand for subsidized rentals, further solidifying the cash-flow anchor status.
In conclusion, ZIP 36032 is best suited as a cash-flow anchor due to the favorable spread between FMR and market rents, coupled with low median home values and a significant renter share. These factors guarantee reliable income and mitigate risks associated with fluctuating real estate markets.
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.