Location: Tallapoosa County, AL | Metro: Clay County, AL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $700 |
| 1 Bedroom | $700 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,130 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
U.S. Census Bureau data (2024)
In ZIP code 36256, there are several risks that potential Section 8 landlords should be aware of. Firstly, tenant turnover could pose a significant challenge due to the disparity between the market rent of $621 and the Federal Market Rent (FMR) of $880 for fiscal year 2026. This difference suggests that tenants might struggle to cover the higher FMR rate, leading to increased turnover. Secondly, vacancy exposure is a concern as the average number of days on market (DOM) is not available, which makes it difficult to predict how long a property might remain vacant. Lastly, deferred maintenance is a risk given the typical home value of $170,161 and the median income of $64,167. Landlords may need to invest in property improvements to meet Section 8 standards, which can be costly.
Despite these risks, the 13.1% renter share indicates a high concentration of renters in the area, which typically translates into a greater demand for housing vouchers. This high renter density can help mitigate the risk of vacancies and ensure a steady stream of tenants. Additionally, the higher FMR rate can provide landlords with a better financial cushion compared to market rents, potentially offsetting some of the costs associated with property maintenance and management.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.