Section 8 Fair Market Rent (FMR) for ZIP 36343 - 2027

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

Investment Score for ZIP 36343

N/A

Monthly Rent (2BR)

$970

Median Price (2BR)

$N/A

1% Rule

Annual Yield

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	$770
1 Bedroom	$770
2 Bedrooms	$970
3 Bedrooms	$1,300
4 Bedrooms	$1,420
5 Bedrooms	$1,647
6 Bedrooms	$1,845
7 Bedrooms	$1,993
8 Bedrooms	$2,093

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
3BR	$1,300	$206,206	0.63%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

1,496

Median Household Income

$47,188

Housing Units

861

Renter Percentage

23.9%

Occupancy Rate

80.3%

Renter Occupied

165

The ZIP code 36343, located in Alabama, presents a unique opportunity for real estate investors interested in the Section 8 housing market. This area has a well-defined rental sector and a steady demand for affordable housing solutions.

The Fair Market Rent (FMR) for ZIP 36343 in fiscal year 2024 is set at $980, providing a benchmark for rental rates that landlords can use to price their properties competitively while ensuring they meet the requirements for Section 8 tenants.
According to Census ACS data, the average market rent in the area stands at $907. This indicates that landlords participating in the Section 8 program can expect slightly higher rents compared to the general market, thus potentially increasing profitability.
The median home value in ZIP 36343 is $152,050, making it accessible for both first-time homeowners and investors looking to purchase properties at a reasonable cost.
Renters make up 23.9% of the population in this ZIP code, suggesting a moderate demand for rental properties and a balanced market between owners and renters.
The median income for residents in ZIP 36343 is $47,188, which aligns with the income eligibility criteria for many Section 8 programs, ensuring a stable pool of potential tenants.

Investors should take note of these key metrics when considering opportunities in ZIP 36343. The higher FMR compared to the average market rent provides a financial edge for those willing to participate in the Section 8 program. Additionally, the median home value offers a low barrier to entry for property acquisition. With a median income that fits within Section 8 guidelines, there's a consistent demand for affordable housing, making this area ripe for investment in rental properties. However, the moderate renter share suggests that while there is demand, it's not overwhelming, allowing for a diverse portfolio mix of rental and owner-occupied homes.

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.