Section 8 Fair Market Rent (FMR) for ZIP 36303 - 2027

Location: Dale County, AL | Metro: Dothan, AL HUD Metro FMR Area

Investment Score for ZIP 36303

Monthly Rent (2BR)

$960

Median Price (2BR)

$81,554

1% Rule

1.18%

Annual Yield

14.13%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$760
1 Bedroom	$770
2 Bedrooms	$960
3 Bedrooms	$1,290
4 Bedrooms	$1,420
5 Bedrooms	$1,647
6 Bedrooms	$1,845
7 Bedrooms	$1,993
8 Bedrooms	$2,093

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$960	$81,554	1.18%	B
3BR	$1,290	$199,486	0.65%	D
4BR	$1,420	$316,962	0.45%	F
5BR	$1,647	$498,697	0.33%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

30,173

Median Household Income

$54,147

Housing Units

14,683

Renter Percentage

41.3%

Occupancy Rate

83.2%

Renter Occupied

5,050

The ZIP code 36303, located in Dothan, Alabama, represents a stable housing market with a significant rental component, making it attractive for real estate investors interested in both single-family homes and multi-unit properties. The area benefits from a mix of residential and commercial zones, offering tenants access to local amenities and services.

The Fair Market Rent (FMR) for ZIP 36303 in fiscal year 2024 is set at $900, providing a benchmark for affordable housing units under the Section 8 program.
The market rent, as measured by the Zillow Observed Rental Index (ZORI), stands at $1,217, indicating that there is potential for higher rents outside of subsidized housing programs.
The median home value in the area is $184,636, reflecting a relatively affordable market for property acquisition.
Renters make up 41.3% of the population, suggesting a robust demand for rental properties and a diverse tenant pool.
The days on market (DOM) for listings is 26 days, which is below the national average, pointing to a brisk pace of sales and rentals.
The median household income is $54,147, offering insight into the economic profile of the area and the ability of residents to pay rent or mortgages.

In summary, ZIP 36303 presents a balanced opportunity for real estate investment. With a substantial portion of the population renting and a healthy market rent above the FMR, landlords can expect steady demand for their properties. The median home value suggests that purchasing properties could be financially feasible, while the quick turnover rate indicated by the DOM highlights the market's efficiency. However, investors should consider the median income when setting rental rates to ensure affordability and maintain occupancy levels.

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.