Location: Coosa County, AL | Metro: Chilton County, AL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,160 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
U.S. Census Bureau data (2024)
ZIP 36091, located in Coosa County, Alabama, serves as an ideal cash-flow anchor for a Section 8 portfolio strategy. The Federal Market Rent (FMR) for FY 2024 in this area is set at $880, while the average market rent stands at $640. This creates a significant spread of $240 per month, which can be leveraged to ensure positive cash flow.
The median home value in ZIP 36091 is $234,492. Despite being lower than many urban areas, it still provides a solid foundation for rental properties. Landlords can benefit from the higher FMR rates, which are designed to reflect fair market conditions, even if the local market rents are lower. This ensures that landlords receive a competitive rental income, supporting their overall financial stability.
The area's renter share is 16.8%, indicating a moderate demand for rental properties. However, the median income of $61,214 suggests that residents have the financial capability to afford Section 8 rents. This makes ZIP 36091 particularly attractive for landlords seeking stable, long-term tenants who are likely to maintain their rental obligations without significant risk of default.
To further illustrate the cash-flow potential, consider the following example. If a landlord purchases a property for $234,492 and secures a Section 8 tenant paying $880 per month, the landlord can expect a positive cash flow given the market rent is $640. This scenario is bolstered by the fact that the FMR is designed to cover operating costs, including maintenance and utilities, ensuring that the landlord's investment remains profitable.
While appreciation plays and diversifiers are important components of any real estate portfolio, ZIP 36091 excels as a cash-flow anchor due to its favorable FMR to market rent ratio and the financial stability of its residents. Landlords and small-portfolio investors should prioritize ZIP 36091 for its ability to provide consistent, reliable income streams.
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.