Location: Montgomery, AL | Metro: Montgomery, AL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $980 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
The potential risks for investing in Section 8 properties in ZIP code 36125 in Unknown, AL, include high tenant turnover rates due to the discrepancy between the market rent and the Fair Market Rent (FMR) set at $1080 for FY 2024. This could lead to frequent vacancies and increased costs associated with tenant screening, turnover, and maintenance.
Vacancy exposure is another concern, as the days on market (DOM) data is currently unavailable. This makes it difficult to predict how quickly a property can be rented out, which is crucial for maintaining steady cash flow.
Deferred maintenance is also a significant risk factor. With no specific data on typical home values and median incomes in the area, it's challenging to assess the financial capacity of residents to maintain homes at a high standard. Poor maintenance can lead to costly repairs and a decline in property value over time.
Despite these risks, the high renter share in the area—though the exact percentage is not available—typically indicates strong demand for rental housing and Section 8 vouchers. High renter density often translates into a larger pool of potential tenants, which can help mitigate the risk of vacancies.
Verdict: Moderate risk for a first-time Section 8 landlord.
Data Sources: FMR data from HUD (2027).
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.