Section 8 Fair Market Rent (FMR) for ZIP 36107 - 2027
Location: Montgomery, AL | Metro: Montgomery, AL MSA
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $830 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$32,492
Housing Authorities Serving ZIP 36107
The decision to invest in ZIP 36107 (Montgomery, AL) for Section 8 properties hinges on three key factors. Let's break it down:
- Does the Fair Market Rent (FMR) of $920 cover the debt service on a property valued at $67,852?
- Yes. The FMR in Montgomery for fiscal year 2024 is set at $920 per month, which should be sufficient to cover the debt service on a property priced at $67,852. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. At this rental rate, landlords can expect to meet their financial obligations comfortably.
- Is the market rent ($1,004 ZORI) above, at, or below the FMR?
- Above. The market rent, as indicated by the Zillow Rent Index (ZORI), stands at $1,004 per month, which is higher than the FMR of $920. This suggests that landlords could potentially earn more by renting to non-Section 8 tenants. However, the decision to pursue Section 8 tenants would still be viable given the coverage of debt service.
- Are 61.8% of residents renters, and does the N/A-day Days on Market (DOM) indicate enough demand?
- It depends. With 61.8% of the population being renters, there is a substantial pool of potential tenants. However, the lack of specific Days on Market (DOM) data makes it challenging to gauge the speed at which rental properties are occupied. If the DOM is low, indicating quick occupancy, this would support a positive outlook on demand. Conversely, if DOM is high, it might suggest slower demand.
In conclusion, ZIP 36107 offers a feasible opportunity for Section 8 investment based on the FMR covering debt service and market rent being above the FMR. However, the strength of demand remains uncertain without precise DOM data. Landlords should consider these points before making an investment decision.
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.