Location: Tallapoosa County, AL | Metro: Macon County, AL HUD Metro FMR Area
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 | $840 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,020 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,020 | $124,776 | 0.82% | C |
| 3BR | $1,290 | $227,645 | 0.57% | F |
| 4BR | $1,560 | $339,413 | 0.46% | F |
U.S. Census Bureau data (2024)
In Tallassee, AL (ZIP 36078), there are notable risks associated with investing in rental properties through the Section 8 program. First, tenant turnover can be a significant issue due to the discrepancy between the market rent of $936 and the Fair Market Rent (FMR) for FY 2024, which is set at $900. This difference may lead to dissatisfaction among tenants who might prefer to find housing that fully meets their budgetary needs without subsidies.
Vacancy exposure is another critical concern. The Days on Market (DOM) data is not available, making it challenging to predict how long it might take to fill a vacant unit. This uncertainty can result in periods of non-income generation, which can be detrimental to the financial stability of a rental property.
Deferred maintenance is also a potential risk factor. With an average home value of $192,162 and a median household income of $69,289, landlords must be prepared for the possibility that tenants may not have the funds to address minor repairs promptly. This could lead to a buildup of maintenance issues, potentially increasing repair costs over time.
Despite these risks, the high renter share of 27.0% suggests a robust demand for rental units in the area. A higher concentration of renters often translates into greater interest in Section 8 vouchers, ensuring a steady pool of qualified applicants. This factor can mitigate some of the risks associated with tenant turnover and vacancy rates.
The verdict for Tallassee, AL (ZIP 36078) is moderate risk for a first-time Section 8 landlord. While there are significant challenges, the high renter share provides a buffer against vacancy and turnover risks.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.