Location: Bullock County, AL | Metro: Barbour County, AL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $860 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
U.S. Census Bureau data (2024)
The ZIP code 36053 presents several challenges for potential Section 8 landlords. Tenant turnover is a significant concern, as the market rent of $529 is far below the Fair Market Rent (FMR) of $930 for fiscal year 2024. This disparity can lead to higher tenant mobility, as individuals who qualify for Section 8 vouchers might seek better rental deals outside the program. Additionally, vacancy exposure is a risk due to the lack of data on days on market (DOM), which suggests that properties might remain vacant for extended periods, especially if the rent is set below market rates.
Deferred maintenance is another issue, given the typical home value of $86,547 and the median income of $49,357. Landlords may find it difficult to maintain properties at a high standard without incurring significant costs that are not covered by the voucher amounts. The financial strain of upkeep can be particularly challenging when the property's value does not reflect a high-income area, potentially leading to lower returns on investment.
However, these risks must be weighed against the high renter share of 16.1%. High renter density often correlates with a greater demand for housing vouchers, which can provide a steady stream of tenants. The presence of a substantial number of renters indicates a need for affordable housing, which can translate into a stable occupancy rate once tenants are secured.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 36053 is moderate.
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.