Location: Coosa County, 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 | $990 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,150 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,710 |
| 5 Bedrooms | $1,984 |
| 6 Bedrooms | $2,222 |
| 7 Bedrooms | $2,400 |
| 8 Bedrooms | $2,520 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,480 | $373,915 | 0.4% | F |
U.S. Census Bureau data (2024)
The investment landscape for Section 8 properties in ZIP code 36080 presents several critical risks that landlords must consider before entering into such agreements. Firstly, tenant turnover poses a significant challenge. The market rent for the area stands at $1,169, while the Fair Market Rent (FMR) for FY 2024 is set at $1,030. This disparity can lead to higher tenant churn as individuals may seek out lower-cost alternatives, particularly if their financial situation changes. Landlords should prepare for frequent turnover, which can be costly in terms of time and money spent on re-renting and maintaining units.
Vacancy exposure is another concern. The Days on Market (DOM) data is currently unavailable, indicating a potential issue with timely property occupancy. A prolonged period of vacancy can significantly impact cash flow and profitability, especially when considering the fixed costs associated with property ownership. Landlords must have a robust strategy in place to mitigate this risk, including proactive marketing efforts and competitive pricing strategies.
The deferred maintenance exposure is substantial given the typical home value of $307,619 and a median income of $70,703. The gap between home values and median incomes suggests that residents may struggle to afford necessary repairs and upgrades, leading to potential deterioration of the property over time. Landlords will need to budget for regular maintenance and improvements to keep the property in good condition and comply with housing standards.
However, these risks are somewhat offset by the high concentration of renters in the area. With a 16.9% renter share, there is a strong likelihood of increased demand for rental properties, particularly those participating in the Section 8 program. High renter density typically correlates with higher voucher demand, providing a steady stream of qualified tenants who can help stabilize cash flow and reduce the risk of extended vacancies.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.