Location: Coffee County, AL | Metro: Dothan, AL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $850 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
U.S. Census Bureau data (2024)
The median income in ZIP code 36316 stands at $77,016. Considering the market rate for rent is $1,131 according to the Census ACS, a household earning the median income would find it challenging to afford market-rate housing without significant financial strain. The monthly rent represents approximately 14.7% of the median annual income, which is higher than the recommended 30% threshold for housing affordability.
In contrast, the voucher payment standard for Fair Market Rent (FMR) in ZIP 36316 for fiscal year 2024 is set at $880. This amount is significantly lower than the market rate, making it easier for households receiving vouchers to secure housing within their budget. At $880 per month, the rent constitutes about 12.2% of the median income, bringing it closer to the affordability range but still indicating a substantial gap between market rates and what is considered affordable.
With only 13.1% of the 2,071 population being renters, the competition for rental properties is relatively low. However, the affordability gap means that many potential renters might struggle to pay market rates, leading to a preference for subsidized housing options such as those covered by Section 8 vouchers. This preference could result in a higher demand for properties that accept vouchers.
For landlords considering their strategy regarding voucher vs. cash-pay tenants, the data suggests that while cash-paying tenants might offer higher rents, the likelihood of finding such tenants willing to pay market rates is limited given the income levels and the overall number of renters. Accepting Section 8 vouchers could provide a steady stream of tenants who are able to pay consistently, albeit at a lower rate. The decision should weigh the benefits of long-term stability against the potential for slightly higher immediate revenue from cash-paying tenants.
Data Sources: FMR data from HUD (2027). 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.