Location: Dothan, AL | Metro: Dothan, AL HUD Metro FMR Area
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 | $730 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,350 |
| 5 Bedrooms | $1,566 |
| 6 Bedrooms | $1,754 |
| 7 Bedrooms | $1,894 |
| 8 Bedrooms | $1,989 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $920 | $106,856 | 0.86% | C |
| 3BR | $1,230 | $185,966 | 0.66% | D |
| 4BR | $1,350 | $310,681 | 0.43% | F |
U.S. Census Bureau data (2024)
The renter's perspective in ZIP 36301, located in Dothan, Alabama, reveals a challenging but manageable housing market. The median household income stands at $50,125, which places the market rate rent of $917 at approximately 22% of the average monthly income. This is within the generally accepted guideline that housing costs should not exceed 30% of a household's income. However, it leaves little room for other expenses, indicating a tight budget for many residents.
Comparatively, the Housing Choice Voucher program offers a more affordable option, with a Fair Market Rent (FMR) standard set at $870 for zip code 36301 in fiscal year 2024. This represents a savings of $47 per month for tenants, making it an attractive choice for those seeking to reduce their housing expenses. It also means that voucher holders can potentially allocate funds towards other necessities, such as healthcare, education, and transportation.
With 41.9% of the population being renters and a total population of 39,452, the demand for rental properties is significant. The affordability gap between market rate rents and voucher payments could lead to increased competition among landlords who choose to accept vouchers. Those who do not might find themselves with fewer tenants willing to pay the higher market rates, especially if they are not well-located or maintained.
The takeaway for landlords considering whether to accept voucher tenants or focus on cash-paying residents is clear: accepting vouchers can be a strategic decision to fill vacancies and attract tenants who value stability and affordability. While the $870 voucher payment is slightly below the market rate, it ensures a steady stream of income and helps maintain occupancy levels. Landlords who prioritize high-end amenities or premium locations may still opt for cash-paying tenants, but they must be prepared to compete in a market where affordability is a key factor for many households.
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.