Section 8 Fair Market Rent (FMR) for ZIP 36312 - 2027

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

Investment Score for ZIP 36312

C
Monthly Rent (2BR)
$920
Median Price (2BR)
$98,435
1% Rule
0.93%
Annual Yield
11.22%

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$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

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 $920 $98,435 0.93% C
3BR $1,230 $194,104 0.63% D
4BR $1,350 $306,633 0.44% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
6,249
Median Household Income
$56,994
Housing Units
2,830
Renter Percentage
24.0%
Occupancy Rate
84.9%
Renter Occupied
577

Ashford, AL, located in Houston County, has a unique demographic profile that sets it apart from other areas. With a population of 6,249 residents, 24.0% of whom rent their homes, Ashford maintains a median income of $56,994. The median home value in the area is notably higher at $194,303.

The economic dynamics surrounding Section 8 housing vouchers in ZIP code 36312 are particularly interesting. The Fair Market Rent (FMR) for the zip code for fiscal year 2024 is set at $860. In comparison, the average market rent, as reported by the Census Bureau's American Community Survey (ACS), stands at $884. This indicates that the market rents slightly exceed the FMR, which could influence the attractiveness of the area for voucher holders.

Given the data, Ashford appears to be a stable community. The relatively low percentage of renters suggests a strong homeownership culture, while the median home value indicates a robust real estate market. The slight discrepancy between the FMR and market rents does not signal significant transitional pressures, but rather a minor adjustment in rental costs that aligns closely with the federal guidelines.

To summarize, landlords and small-portfolio investors in Ashford should expect a steady demand for rental properties, especially those willing to accept Section 8 vouchers. The current economic indicators suggest a stable environment with a slight advantage for market-rate rentals over federally subsidized ones.

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.