Location: Crenshaw County, AL | Metro: Coffee County, AL
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 | $1,280 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,280 | $173,111 | 0.74% | D |
U.S. Census Bureau data (2024)
The ZIP code 36323 encompasses a residential area with a population of 7,967 individuals, where 22.8% of residents are renters. The median household income stands at $45,819, while the median home value is notably lower at $128,355. This suggests an environment where affordability is a significant factor influencing housing decisions.
From an investment perspective, the rent economics in ZIP 36323 present both challenges and opportunities. According to the Fair Market Rent (FMR) set by HUD for the fiscal year 2026, the metro area FMR is $780. However, the current market rent, as reported by the Census Bureau's American Community Survey, is $640. This discrepancy between FMR and market rent indicates a potential for higher rental income if properties can be brought up to HUD standards, but it also highlights the necessity for cost-effective property management practices.
For hands-off voucher operators, ZIP 36323 offers a viable option due to the lower median home values and the presence of a significant number of renters who could benefit from the Section 8 program. The gap between the FMR and market rent suggests that there is room for landlords to receive higher rents through the voucher program without necessarily increasing their property's value significantly.
On the other hand, for hands-on value-add buyers looking to improve and increase the value of their properties, ZIP 36323 presents a more complex scenario. While the opportunity exists to raise rents closer to the FMR, it would require investments to meet the quality and condition standards expected by the Section 8 program. These improvements could potentially lead to higher property values and better tenant retention rates, aligning with the goal of maximizing long-term returns.
In summary, ZIP 36323 caters well to hands-off voucher operators seeking steady, government-backed rental income. For those inclined towards a more active role in property management and improvement, there is a path to higher returns but with increased initial investment and ongoing management efforts required to achieve the desired outcomes.
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.