Section 8 Fair Market Rent (FMR) for ZIP 36113 - 2027
Location: Montgomery, AL | Metro: Montgomery, AL MSA
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $1,480 |
| 1 Bedroom | $1,510 |
| 2 Bedrooms | $1,730 |
| 3 Bedrooms | $2,220 |
| 4 Bedrooms | $2,570 |
| 5 Bedrooms | $2,981 |
| 6 Bedrooms | $3,339 |
| 7 Bedrooms | $3,606 |
| 8 Bedrooms | $3,786 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$127,558
To decide whether to invest in ZIP 36113 for Section 8 properties, follow these steps:
- Step 1: Calculate if the Fair Market Rent (FMR) of $1640 can cover the debt service on a property. If your debt service exceeds $1640 per month, then the answer is No. You will not be able to rely solely on Section 8 payments to meet your financial obligations.
- Step 2: Compare the FMR to the market rent. The average market rent in ZIP 36113 is $2,013 according to the latest Census ACS data. Since $2,013 is higher than the FMR of $1640, you will need to determine if the difference between market rent and FMR justifies the investment. If the gap is too large and you cannot attract tenants willing to pay the market rate, the answer is No.
- Step 3: Assess the rental demand. In ZIP 36113, 100.0% of the population are renters, which indicates strong demand. However, the days on market (DOM) is not specified, making it difficult to gauge how quickly units might rent. If the DOM is low, say under 30 days, then the answer is Yes, there is enough demand to support your investment. If the DOM is high, the answer is No, unless you have a strategy to overcome the slow turnover.
In summary, investing in ZIP 36113 for Section 8 properties is viable only if the FMR can cover your debt service, the market rent isn't significantly higher than the FMR, and the rental demand is robust with quick turnover rates. Given the 100.0% renter rate, the primary gating factor will be the days on market for vacant units.
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.