Location: Anniston-Oxford, AL | Metro: Anniston-Oxford, AL MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,390 |
| 5 Bedrooms | $1,612 |
| 6 Bedrooms | $1,805 |
| 7 Bedrooms | $1,949 |
| 8 Bedrooms | $2,046 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,050 | $103,131 | 1.02% | B |
| 3BR | $1,390 | $168,793 | 0.82% | C |
| 4BR | $1,390 | $222,031 | 0.63% | D |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 36206 reveals a significant opportunity for landlords and small-portfolio investors. The Fair Market Rent (FMR) for the area, set at $950 for fiscal year 2024, exceeds the current market rent, which stands at $906 according to ZORI. This creates a $44 differential, representing approximately a 4.86% premium for voucher tenants.
In this context, voucher tenants are a yield play. Landlords can secure a higher rental income than what is typically offered in the open market. This premium is particularly advantageous given the economic landscape of Saks, Alabama, where 38.5% of residents are renters, indicating a substantial demand for affordable housing. Additionally, the median home value in the area is $148,383, while the median income is $51,116, suggesting that many residents struggle to find housing that fits their budget. By accepting Section 8 vouchers, landlords cater to this need while also benefiting financially.
The higher FMR rate allows landlords to cover costs more effectively, including maintenance and property management expenses. It also provides a buffer against potential fluctuations in the local rental market. For small-portfolio investors, this means a more stable and predictable cash flow, crucial for long-term investment success.
However, it's important to note that while the FMR offers a financial advantage, there are administrative considerations. Landlords must ensure compliance with HUD regulations and possibly undergo inspections. These factors should be weighed against the financial benefits when deciding whether to accept Section 8 tenants.
To summarize, the $44 premium on FMR over market rent in ZIP 36206 makes Section 8 properties a compelling investment, especially considering the economic conditions in Saks, Alabama. This differential not only enhances yield but also helps meet the housing needs of low-income families.
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.