Location: Montgomery, 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 | $930 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,090 | $152,757 | 0.71% | D |
| 3BR | $1,400 | $236,299 | 0.59% | F |
| 4BR | $1,620 | $310,631 | 0.52% | F |
U.S. Census Bureau data (2024)
In ZIP code 36092 located in Wetumpka, Alabama, there are several factors that could pose challenges for landlords considering Section 8 investments. First, tenant turnover could be a significant issue due to the disparity between the market rent of $1,430 and the Fair Market Rent (FMR) set at $1,030 for fiscal year 2024. This difference indicates that tenants might struggle to afford higher rents outside of the subsidized program, leading to frequent moves and increased vacancy periods.
Vacancy exposure is another concern. The Days on Market (DOM) figure is not available, which suggests a lack of detailed data on how long properties typically remain vacant before being rented. However, with a median home value of $231,198 and a median household income of $78,094, it's clear that the cost of living in the area is relatively high compared to the average income. This economic situation can result in deferred maintenance, as tenants may not have the financial resources to cover additional costs beyond their rent.
Despite these risks, the high density of renters in the area—comprising 24.3% of the population—usually translates into strong demand for rental properties, including those that accept Section 8 vouchers. A larger proportion of renters often correlates with a higher likelihood of finding tenants who need and qualify for housing assistance programs, thereby stabilizing occupancy rates.
The verdict for a first-time Section 8 landlord in ZIP 36092 is moderate risk. While there are potential issues with tenant turnover and deferred maintenance, the high renter share provides a buffer against prolonged vacancies, making the investment viable but requiring careful management.
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.