Location: Henry County, AL | Metro: Henry County, 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 | $700 |
| 1 Bedroom | $700 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,100 |
| 4 Bedrooms | $1,280 |
| 5 Bedrooms | $1,485 |
| 6 Bedrooms | $1,663 |
| 7 Bedrooms | $1,796 |
| 8 Bedrooms | $1,886 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,100 | $217,699 | 0.51% | F |
U.S. Census Bureau data (2024)
The ZIP code 36310 is situated in a neighborhood characterized by a modest population of 6,201 residents, where nearly 30% of the inhabitants are renters. The median household income here stands at $34,744, reflecting a community that is predominantly middle to lower-middle class. The median home value in this area is $156,118, indicating that homeownership is relatively affordable compared to other regions.
From an investment perspective, the rental economics present a compelling opportunity. The Fair Market Rent (FMR) for ZIP 36310, as set by HUD for fiscal year 2024, is $860. However, the actual market rent, according to Census ACS data, is significantly lower at $656. This discrepancy suggests that landlords can potentially increase rents closer to the FMR without pricing out the majority of tenants, who are likely to be recipients of Section 8 housing vouchers.
The suitability of ZIP 36310 for Section 8 investors depends largely on their investment strategy. For hands-off operators, the area's characteristics align well with the needs of voucher holders, ensuring a steady stream of tenants with reliable income sources. The low market rent relative to the FMR also provides a buffer against potential increases in voucher rates, which can help maintain profitability over time.
For hands-on value-add buyers, the ZIP offers room for improvement. By enhancing property conditions or adding amenities, landlords can justify higher rents that approach the FMR. This strategy can lead to increased cash flow and potentially higher property values in the future, given the neighborhood's affordability and the alignment with voucher recipients' budget constraints.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.