Location: Pike County, AL | Metro: Coffee County, AL
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 | $850 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,350 | $236,180 | 0.57% | F |
U.S. Census Bureau data (2024)
In ZIP code 36079, the median income stands at $59,405, which contrasts sharply with the market rate for rent, set at $918 according to the Census ACS. This discrepancy highlights a significant challenge for households in affording the local rental market without financial assistance. The Federal Market Rent (FMR) for the metro area in fiscal year 2026 is pegged at $990, indicating that even with a Section 8 voucher, the cost of renting remains high relative to the average income.
The affordability gap in ZIP 36079 is evident when comparing the median income to both the market rate and the FMR. At $918, the market rate consumes a substantial portion of the median income, leaving little room for other expenses. The FMR at $990 further stretches the budget of a typical household, emphasizing the reliance on housing vouchers for many residents.
With 27.3% of the 9,174 population being renters, competition among landlords is fierce. Voucher holders represent a reliable tenant base, given the government's role in ensuring timely rent payments. However, landlords must weigh the benefits of accepting vouchers against the potential for higher rents from cash-paying tenants who can afford the $918 market rate.
The takeaway for landlords considering voucher versus cash-pay strategies is clear: while voucher tenants provide stability and guaranteed income, they may also limit the ability to maximize rental revenue. Landlords should assess their property's value, maintenance costs, and local demand to determine the most profitable strategy. In ZIP 36079, where the median income is low relative to the market rate and FMR, focusing on voucher tenants could ensure consistent occupancy and income, though it may mean foregoing slightly higher rents from cash-paying tenants.
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.