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 | $850 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,270 | $297,427 | 0.43% | F |
| 4BR | $1,520 | $381,000 | 0.4% | F |
| 5BR | $1,763 | $507,714 | 0.35% | F |
U.S. Census Bureau data (2024)
In ZIP code 36093, there are several factors that could pose challenges for landlords considering Section 8 investments. Tenant turnover is a significant concern, with the market rent at $986 being notably lower than the Fair Market Rent (FMR) of $1280 for fiscal year 2024. This discrepancy suggests that tenants might be more inclined to move once they secure a higher-paying job or find a more affordable housing option outside of the Section 8 program. Additionally, vacancy exposure is heightened due to the lack of available data on days on market (DOM), indicating potential unpredictability in how quickly units can be filled.
The risk of deferred maintenance is also present, given the typical home value of $337,427 and a median income of $120,693. Landlords must be prepared to invest in property upkeep, as the income level of tenants may not cover the costs of maintaining properties at a high standard. However, these risks are somewhat mitigated by the fact that 7.6% of residents are renters, which is a relatively high proportion. High renter density often correlates with increased demand for rental assistance programs such as Section 8, providing a steady stream of potential tenants.
Despite the challenges, the high renter share in ZIP 36093 indicates a robust market for rental properties, which can translate into strong tenant demand and a higher likelihood of finding qualified Section 8 participants. The combination of manageable risks and a supportive environment for rental investments makes ZIP 36093 a moderate risk area for first-time Section 8 landlords.
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.