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 | $930 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,390 | $276,453 | 0.5% | F |
| 4BR | $1,600 | $370,098 | 0.43% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 36043 in fiscal year 2024 is set at $1230. This figure represents the maximum amount that a landlord can charge for a Section 8 rental unit in this area. It's important to note that this is not the actual rent that tenants will pay; it's the benchmark used by the government to determine the subsidy amount.
To put this into perspective, the average rent in ZIP 36043, based on Census American Community Survey data, is $1,097. This means that if you participate in the Section 8 program, your rental income could be slightly higher than the local average, but it won't exceed the FMR limit.
The 17.1% renter share indicates that nearly one in every six residents in this area are renters. This suggests a steady demand for rental housing, particularly for those who qualify for the Section 8 program. The acquisition cost for a property in this ZIP code is around $242,596, which is the median home value according to recent data.
If you're considering adding a Section 8 rental to your portfolio, ensure that the property meets all the necessary Housing Quality Standards (HQS) required by the program. This includes basic safety and habitability criteria such as working plumbing, heating, and electrical systems. Verifying these standards before signing up for the program is crucial to avoid any potential delays or issues with tenancy.
In summary, the FMR of $1230 provides a clear ceiling for your rental income, while the local average rent of $1,097 gives an indication of market rates. With a 17.1% renter share, there is a solid base of potential tenants, and the median home value of $242,596 sets the stage for your investment. Before proceeding, confirm that your property meets all HQS requirements to ensure a smooth process.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.