Location: Randolph County, AL | Metro: Chambers County, AL
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 | $750 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,140 |
| 4 Bedrooms | $1,240 |
| 5 Bedrooms | $1,438 |
| 6 Bedrooms | $1,611 |
| 7 Bedrooms | $1,740 |
| 8 Bedrooms | $1,827 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,140 | $188,971 | 0.6% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 36274 in Randolph County, Alabama reveals key insights for potential landlords and small-portfolio investors.
The rent math does not work favorably in this area. The Fair Market Rent (FMR) for the metro area for fiscal year 2026 is set at $900, while the actual market rent based on Census ACS data stands at only $653. This discrepancy means that landlords might struggle to cover costs and generate profit at the current market rate.
Acquisition in this region is relatively affordable. The median home value is $148,714, which is a manageable investment for most landlords. However, the lack of available data on days on market (DOM) and the low percentage of homes requiring price cuts (0.1%) suggest that the housing market may be stable but not highly active, potentially limiting opportunities for quick acquisitions or resale.
Tenant demand is present but not overwhelming. With a total population of 9,968, and 26.4% of residents being renters, there is a steady pool of potential tenants. Yet, the relatively small number of renters compared to the overall population indicates that competition among landlords could be significant.
Verdict: ZIP 36274 offers an opportunity for landlords willing to invest in a stable but modestly priced rental market. However, the gap between the FMR and the actual market rent poses a challenge for profitability. Given the median home value and the limited data on market activity, acquiring properties is feasible but may require patience. The presence of a consistent tenant base provides some assurance, though it is crucial to manage expectations regarding the size of the rental market and the potential for high returns. Landlords should focus on cost management and long-term stability rather than rapid growth or high-profit margins.
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.