Location: Talladega County, 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 | $720 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,230 |
| 5 Bedrooms | $1,427 |
| 6 Bedrooms | $1,598 |
| 7 Bedrooms | $1,726 |
| 8 Bedrooms | $1,812 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,220 | $208,320 | 0.59% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 36260 reveals some interesting insights into potential investment opportunities for landlords and small-portfolio investors. To start, let's look at the Fair Market Rent (FMR) for a two-bedroom apartment, which is set at $860 per month for fiscal year 2024. When annualized, this translates to an annual rental income of $10,320.
In contrast, the market rent for a similar unit, based on Census ACS data, stands at $857 per month. This yields an annual rental income of $10,284 when annualized. Given the median home value in ZIP 36260 is $186,806, we can calculate the implied gross yield for both scenarios.
For the FMR scenario, the gross yield is calculated as follows: $10,320 divided by $186,806 equals approximately 5.5%. For the market rent scenario, the gross yield is slightly lower at around 5.5%, calculated as $10,284 divided by $186,806. The gross yield represents the annual rental income as a percentage of the property's value, providing a straightforward measure of profitability.
However, it's important to consider the context of these figures. With a renter density of 18.1%, it suggests that a significant portion of the population in ZIP 36260 owns their homes rather than renting. This could impact the demand for rental properties, particularly those participating in the Section 8 program.
The average number of days on market (DOM) is not available, which would have helped gauge the speed at which rental units are typically leased. Without this data, it's challenging to assess how quickly a landlord might be able to turn over a Section 8 unit, though the relatively low renter density might indicate slower turnover rates.
Given these factors, the FMR scenario, with its slightly higher gross yield, appears more favorable at first glance. However, the actual performance will depend on various other considerations such as the cost of maintenance, vacancy rates, and the specific terms of the Section 8 contract. Investors should carefully evaluate these elements before making any decisions.
In summary, the Section 8 cap-rate for ZIP 36260 shows an implied gross yield of about 5.5% under both the FMR and market rent scenarios. While the FMR provides a marginally better yield, the overall low renter density suggests that the market rent scenario might be more realistic in terms of long-term occupancy and profitability.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.