Location: Cleburne 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 | $780 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,290 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,000 | $121,618 | 0.82% | C |
| 3BR | $1,290 | $199,735 | 0.65% | D |
| 4BR | $1,380 | $272,018 | 0.51% | F |
U.S. Census Bureau data (2024)
The potential pitfalls for investing in Section 8 housing in ZIP code 36272 in Piedmont, AL, are significant. Firstly, the tenant turnover rate is likely to be higher due to the slight disparity between the market rent of $870 and the Fair Market Rent (FMR) of $860 for fiscal year 2024. This small difference can cause tenants to seek more affordable options, leading to increased churn.
Secondly, the risk of vacancy exposure is notable, as the days on market (DOM) for properties in this area is not available. Without this data, it's difficult to predict how quickly a property will fill once it becomes vacant, which can be detrimental to cash flow stability.
Thirdly, there is a substantial risk of deferred maintenance. The typical home value in ZIP 36272 is $164,389, while the median household income is $51,635. This indicates that homeowners may struggle to maintain their properties, potentially leading to substandard living conditions that do not meet Section 8 standards. Landlords must be prepared to invest in regular upkeep to ensure compliance and avoid penalties.
However, these risks are somewhat mitigated by the high renter share of 22.9%. A large percentage of renters typically translates into a robust demand for housing vouchers, making it easier to find qualified tenants who can consistently pay their rent through the Section 8 program. This demand helps to offset the challenges posed by the other factors.
In conclusion, despite the risks, the high renter density in ZIP 36272 suggests that there is a strong likelihood of finding tenants who qualify for Section 8 assistance. Therefore, the overall risk for a first-time Section 8 landlord in this area is moderate.
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.