Section 8 Fair Market Rent (FMR) for ZIP 36109 - 2027

Location: Montgomery, AL | Metro: Montgomery, AL MSA

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,010
1 Bedroom	$1,030
2 Bedrooms	$1,180
3 Bedrooms	$1,510
4 Bedrooms	$1,750
5 Bedrooms	$2,030
6 Bedrooms	$2,274
7 Bedrooms	$2,456
8 Bedrooms	$2,579

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

23,581

Median Household Income

$59,193

Housing Units

11,288

Renter Percentage

35.1%

Occupancy Rate

89.2%

Renter Occupied

3,540

Housing Authorities Serving ZIP 36109

Housing Authority of the City of Montgomery (Montgomery, AL) - 3,120 Section 8 vouchers

The Montgomery, AL area, specifically ZIP code 36109, is a vibrant neighborhood with a mix of residential and commercial properties, offering a variety of investment opportunities for landlords and small-portfolio investors. The housing market here reflects a balance between affordability and demand, making it a strategic location for real estate investments.

Fair Market Rent (FMR): The FMR for ZIP 36109 in fiscal year 2024 is set at $1,130, indicating the average rental price that is considered fair for the area.
Zillow Observed Rental Index (ZORI): The ZORI for the area currently stands at $1,303, which is higher than the FMR, suggesting that the actual market rents exceed the government's fair market assessment.
Median Home Value: The median home value in ZIP 36109 is $153,285, which is relatively low compared to other areas in Alabama, making it accessible for potential buyers and investors.
Renter Share: With 35.1% of the population renting their homes, there is a significant demand for rental properties, providing ample opportunity for landlords.
Days on Market (DOM): Properties in this area typically stay on the market for about 32 days before they are sold, indicating a reasonably quick turnover rate for sales.
Median Income: The median household income in ZIP 36109 is $59,193, which suggests that residents have sufficient financial capacity to support rental costs up to the ZORI level.

In summary, ZIP 36109 presents a favorable market for real estate investors due to its strong rental demand, relatively low median home values, and a median income that supports the current rental rates. The discrepancy between the ZORI and FMR indicates a potential for higher returns on rental investments. However, the quick turnover rate for property sales also means that flipping homes could be a viable strategy alongside long-term rentals.

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.