Location: Coffee County, AL | Metro: Dothan, AL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,350 |
| 5 Bedrooms | $1,566 |
| 6 Bedrooms | $1,754 |
| 7 Bedrooms | $1,894 |
| 8 Bedrooms | $1,989 |
U.S. Census Bureau data (2024)
To classify ZIP code 36318, we must analyze the given data points: the Fair Market Rent (FMR) for Section 8 at $870, the average market rent at $971, and the median home value at $178,602. Additionally, the percentage of renters is 8.9%, and the median household income is $49,826. The days on market (DOM) figure is not available, which limits our ability to fully assess stability but does not preclude a meaningful analysis.
The yield can be assessed by comparing the FMR to the market rent. With an FMR of $870 and a market rent of $971, landlords participating in the Section 8 program could expect to receive approximately 89.6% of the market rent, calculated as $870 / $971 * 100%. This suggests a relatively low yield when compared to the full market rent. However, it's important to note that the Section 8 program provides guaranteed rental income through government subsidies, which can offset some of the yield concerns.
Regarding stability, the percentage of renters being only 8.9% indicates a market where homeownership is significantly higher than renting. This could imply lower tenant turnover and more stable long-term occupancy for rental properties, assuming they can attract and retain tenants. The lack of days on market data makes it difficult to assess the speed at which rental properties are filled, but the high median home value and moderate median household income suggest that residents have the financial capacity to purchase homes rather than rent, further supporting the idea of a stable market.
Based on these figures, ZIP 36318 leans more towards a steady-cashflow zone rather than a high-yield/low-stability market. While the yield from Section 8 rentals is lower compared to market rates, the overall stability of the market, driven by the high percentage of homeowners and moderate income levels, supports longer-term investment strategies over quick flips. Landlords and small-portfolio investors should focus on the reliability of cash flow and the security of having tenants who are likely to stay for extended periods due to the market conditions favoring home ownership.
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.