Location: Monroe County, AL | Metro: Butler County, AL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $700 |
| 1 Bedroom | $700 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,100 |
| 4 Bedrooms | $1,320 |
| 5 Bedrooms | $1,531 |
| 6 Bedrooms | $1,715 |
| 7 Bedrooms | $1,852 |
| 8 Bedrooms | $1,945 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 36033 reveals a unique balance between yield potential and market stability. With a Fair Market Rent (FMR) of $780 for the metro area in fiscal year 2026, compared to a local market rent of $616, there is a notable opportunity for higher rental yields. This gap suggests that properties in this ZIP code can command rents above the average market rate, thereby offering an attractive return on investment.
However, the median home value stands at $104,770, which is relatively low. This figure indicates that the cost of acquiring properties in this area is manageable, potentially allowing for a quicker return on investment through rental income. The average household income of $37,975 provides insight into the economic profile of the residents, suggesting that while there is a significant percentage of renters at 31.3%, the ability to pay higher rents may be limited.
The lack of data on the number of days on market (DOM) complicates the assessment of property turnover speed, but it does not necessarily indicate instability. A steady cash flow is more likely given the established rental base, though the potential for high yields through rental pricing strategies remains strong.
In conclusion, ZIP 36033 leans towards being a steady-cashflow zone rather than a high-yield/low-stability market. The presence of a substantial rental population and the reasonable median home value support this classification. Landlords and small-portfolio investors should focus on long-term, stable returns rather than quick flips or speculative high yields. The economic indicators suggest a solid foundation for consistent rental income, albeit with caution regarding the pricing of rentals to ensure they align with the local income levels.
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.