Location: Henry County, AL | Metro: Dothan, 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 | $710 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,170 |
| 4 Bedrooms | $1,320 |
| 5 Bedrooms | $1,531 |
| 6 Bedrooms | $1,715 |
| 7 Bedrooms | $1,852 |
| 8 Bedrooms | $1,945 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,170 | $172,755 | 0.68% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 36319 are straightforward. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $960 per month for fiscal year 2024. This figure represents the maximum amount that the Housing Choice Voucher program will pay for a two-bedroom rental unit in ZIP 36319.
Local market rent, according to Census ACS data, averages at $812 per month for a similar unit. This lower market rent suggests that landlords might have some flexibility in setting their own rates, but they should be aware that the voucher program will not cover any rent above the SAFMR limit.
A voucher payment is calculated based on the SAFMR, the tenant's portion of the rent, and utility allowances. The tenant is generally expected to contribute 30% of their adjusted income towards rent. For example, if a tenant's monthly adjusted income is $1,000, they would pay $300 toward the rent. The remaining balance, up to the SAFMR, is covered by the voucher. In ZIP 36319, this means the voucher could potentially cover up to $660 of the rent for a two-bedroom unit.
Utility allowances can vary but are typically around $200-$300 per month. If we assume an average allowance of $250, the total reimbursement a landlord could receive from a voucher would be approximately $910 ($660 for rent + $250 for utilities).
Given these numbers, landlords in ZIP 36319 would face a $50 shortfall per month when renting a two-bedroom unit for $960. However, if they choose to rent at the local market rate of $812, they would see a $98 surplus per month once the voucher covers the tenant's contribution and the utility allowance.
This analysis highlights the importance of understanding both the SAFMR and the local market conditions before deciding on rental pricing for Section 8 tenants. Landlords must weigh the convenience and stability of guaranteed government payments against the potential financial gaps or surpluses that arise from setting their rents above or below the SAFMR.
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.