Location: Pike County, AL | Metro: Bullock 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 | $810 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,270 | $206,207 | 0.62% | D |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 36081 within the Pike County, AL metro area reveals a significant gap between the HUD Fair Market Rent (FMR) and the actual market rent. The HUD FMR for this region is set at $920 for the fiscal year 2026, while the Zillow Observed Rent Index (ZORI) stands at $1,288. This indicates that landlords operating under Section 8 vouchers will experience marginal cash flow at best, unless they focus exclusively on premium units.
To further contextualize the rental market, the median home value in ZIP 36081 is $162,550. By comparing this figure with the ZORI, we can calculate the rent-to-price ratio. A property priced at the median would generate a monthly rent of approximately $1,288, which equates to an annual rent of $15,456. Dividing the annual rent by the median home value yields a rent-to-price ratio of about 9.5%, suggesting that the rental income does not fully cover the cost of owning a home at the median price point. This ratio highlights the importance of understanding both the rental and purchase markets when making investment decisions.
In terms of market dynamics, the N/A-day median Days on Market (DOM) and the 0.1% price-cut share indicate a stable housing market. The lack of significant days on market and minimal price adjustments suggest that properties in this area are generally selling without extended periods of being listed or requiring substantial price reductions. This stability is crucial for investors looking to minimize risk and ensure steady returns.
The strongest angle for investors in ZIP 36081 is stability. Given the marginal cash flow potential and the relatively low rent-to-price ratio, the predictability and consistency of the local real estate market provide a solid foundation for long-term investment strategies.
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.