Section 8 Fair Market Rent (FMR) for ZIP 36269 - 2027

Location: Cleburne County, AL | Metro: Cleburne County, AL

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$950
1 Bedroom	$980
2 Bedrooms	$1,220
3 Bedrooms	$1,510
4 Bedrooms	$1,600
5 Bedrooms	$1,856
6 Bedrooms	$2,079
7 Bedrooms	$2,245
8 Bedrooms	$2,357

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

1,443

Median Household Income

$44,618

Housing Units

783

Renter Percentage

19.2%

Occupancy Rate

87.4%

Renter Occupied

131

A landlord considering investing in ZIP code 36269 for Section 8 properties must follow a structured decision-making process based on financial metrics and market conditions.

Step 1: Evaluate if the Fair Market Rent (FMR) of $1,020 can cover the debt service on a property valued at $218,437. To determine this, calculate the annual income from FMR ($1,020 x 12 months = $12,240) and compare it against the total annual debt service costs. If the annual FMR income exceeds the debt service costs, proceed to Step 2. Otherwise, this investment would not be advisable due to insufficient rental income to meet financial obligations.

Step 2: Assess whether the market rent of $1,035 is above, at, or below the FMR. In this case, the market rent slightly exceeds the FMR, indicating that landlords could potentially charge a bit higher than the subsidized rate. This is beneficial because it allows for a margin above the FMR which can help offset any unforeseen expenses or fluctuations in subsidies.

Step 3: Consider the demand factors: 19.2% of residents are renters, but the days on market (DOM) for rental listings is listed as N/A. Given that 19.2% of the population are renters, there is a notable demand for rental properties. However, without knowing the DOM, it's challenging to gauge how quickly properties are being rented. If the DOM is low, it suggests strong demand and a favorable market for Section 8 properties. Conversely, if the DOM is high, it indicates weaker demand, making the investment less attractive.

If Yes: The FMR covers the debt service and the market rent is above FMR. There is a significant percentage of renters, and assuming the DOM is low, this ZIP code is a good investment for Section 8 properties. Landlords can expect stable tenant inflow and reasonable rent premiums.
If No: The FMR does not cover the debt service or the market rent is below FMR. Even with a high percentage of renters, the financial viability is compromised, leading to an unadvisable investment.
If It Depends: The FMR covers the debt service, and the market rent is above FMR, but the DOM status is unknown. In this scenario, landlords should research further into the rental market dynamics of ZIP 36269 to understand the speed at which properties are leased. A low DOM will support the investment decision, while a high DOM will likely discourage it.

To conclude, the investment decision in ZIP 36269 hinges on the financial metrics and market demand indicators. Ensure the FMR adequately covers debt service, market rent is competitive, and rental demand is robust before proceeding with a Section 8 investment.

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.