Location: Cleburne County, AL | Metro: Cleburne County, AL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $770 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $980 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,290 |
| 5 Bedrooms | $1,496 |
| 6 Bedrooms | $1,676 |
| 7 Bedrooms | $1,810 |
| 8 Bedrooms | $1,901 |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 36262 centers around the disparity between the Fair Market Rent (FMR) set at $870 for the metro area in fiscal year 2026 and the actual market rent reported at $779 based on Census ACS data. This gap amounts to $91, or approximately 11.7%, indicating that landlords can potentially charge higher rents to voucher holders compared to what the open market would bear.
Given that the FMR exceeds the market rent, this situation positions ZIP 36262 as a favorable yield play for landlords willing to accept Section 8 vouchers. The key rationale lies in the fact that voucher tenants will cover the full $870 FMR, which is above the current market rate, thus providing an opportunity to earn more per unit than what might be achievable through conventional rental agreements.
The ZIP code's demographic context further supports this conclusion. With 18.5% of residents being renters, there is a notable demand for affordable housing. Additionally, the median home value stands at $211,887, suggesting a mix of homeownership and rental properties. The median income of $68,611 also indicates that a significant portion of the population may rely on government assistance such as Section 8 vouchers to afford housing.
To summarize, the gap between the FMR and the market rent in ZIP 36262 presents a clear opportunity for landlords to enhance their rental yields by accepting Section 8 vouchers. This strategy leverages the government's willingness to pay a higher rate than the current market conditions, translating into a direct financial benefit for property owners. Moreover, the local economic and housing landscape reinforces the attractiveness of this approach, making it a prudent choice for small-portfolio investors looking to capitalize on the existing demand for subsidized housing.
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.