Section 8 Fair Market Rent (FMR) for ZIP 36110 - 2027

Investment Score for ZIP 36110

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Skeptical investors considering real estate investments in ZIP 36110, Montgomery, AL, often raise several key concerns. Let's address them with the available data.

• Will FMR $1020 (zip FY 2024) cover the mortgage on a $55,678 home?: The Fair Market Rent (FMR) for ZIP 36110 in fiscal year 2024 is set at $1020. This figure represents the maximum amount that a landlord can charge for a Section 8 rental agreement. To determine if this will cover the mortgage, we need to consider the typical mortgage rates and terms. Assuming a 30-year fixed-rate mortgage at an average rate of 5%, the monthly payment on a $55,678 home would be approximately $290. At this rate, the FMR of $1020 easily covers the mortgage, leaving ample room for property taxes, insurance, maintenance, and profit.
• Is there enough renter demand at 50.0%?: The rental demand in ZIP 36110 stands at 50.0%. This percentage indicates that half of the housing units in the area are rented, which is a significant portion but not unusually high. However, it's important to note that the demand for affordable housing, especially in areas with a strong Section 8 presence, tends to remain steady even when overall rental rates fluctuate. Additionally, Montgomery has seen a growing population, suggesting potential for increased demand in the future.
• Will vouchers keep pace with $1,046 market rents?: The market rent in ZIP 36110 is $1,046, slightly above the FMR. Vouchers are designed to cover the gap between what a tenant can afford and the market rent, up to the FMR limit. Therefore, while the voucher amount might not fully cover the market rent of $1,046, it will still provide a substantial subsidy, making the property attractive to tenants who qualify. Landlords should be aware that they may need to adjust their rental prices to align with the FMR to ensure full occupancy.

The data shows that while there are challenges, the potential for stable income from Section 8 rentals in ZIP 36110 remains viable. The key is to manage expectations regarding rental pricing and to stay informed about any changes in voucher policies or housing market trends.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.