Location: Bullock County, AL | Metro: Macon County, AL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,100 |
| 4 Bedrooms | $1,370 |
| 5 Bedrooms | $1,589 |
| 6 Bedrooms | $1,780 |
| 7 Bedrooms | $1,922 |
| 8 Bedrooms | $2,018 |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 36089 provides a detailed insight into potential rental income scenarios for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a two-bedroom apartment in this area, based on FY 2026 data, is set at $790 per month. When annualized, this equates to an implied gross yield of approximately 6.1%. This calculation is derived from the formula: ($790 * 12 months) / $128,077 = 0.061, or 6.1%.
In contrast, the market rent for a similar property, according to Census ACS data, stands at $585 per month. Annualizing this figure results in an implied gross yield of about 4.5%. The computation follows: ($585 * 12 months) / $128,077 = 0.045, or 4.5%.
Evaluating these yields against the 36.7% renter density in ZIP 36089 reveals that the FMR scenario might be overly optimistic. Given the high percentage of renters, it suggests a robust demand for rental properties, which could support higher rents. However, the actual market rent of $585 is more reflective of what landlords can realistically expect to charge in this area.
The absence of data on days on market (DOM) makes it difficult to assess how quickly properties can be rented out. Despite this, the lower market rent of $585 appears to be the more practical figure for investment analysis in ZIP 36089. While the FMR of $790 offers a higher gross yield, it is important to consider the likelihood of achieving such rents consistently in the current market conditions.
Investors should use the 4.5% gross yield based on the market rent as a starting point for their calculations. This figure aligns better with the existing economic realities of the area and the observed rental market trends. Although the FMR-based yield is appealing, relying on it without further evidence could lead to inaccurate investment projections.
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.