Section 8 Fair Market Rent (FMR) for ZIP 36344 - 2027

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

Investment Score for ZIP 36344

N/A

Monthly Rent (2BR)

$920

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	$730
1 Bedroom	$730
2 Bedrooms	$920
3 Bedrooms	$1,230
4 Bedrooms	$1,350
5 Bedrooms	$1,566
6 Bedrooms	$1,754
7 Bedrooms	$1,894
8 Bedrooms	$1,989

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$1,230	$199,229	0.62%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

5,405

Median Household Income

$60,377

Housing Units

2,457

Renter Percentage

28.2%

Occupancy Rate

84.0%

Renter Occupied

583

The town located in ZIP code 36344, situated in Alabama, is characterized by a modest cost of living and a balanced mix between homeowners and renters. This area offers a strategic opportunity for real estate investors looking to tap into both rental and homeownership markets.

The Fair Market Rent (FMR) for ZIP 36344 in fiscal year 2024 is set at $860. This figure represents the average monthly rent for a standard two-bedroom apartment, providing a benchmark for rental pricing in the area.
The market rent for the region, as reported by the Census Bureau's American Community Survey, stands at $836. This indicates that the actual rental rates are slightly below the FMR, offering a competitive landscape for landlords.
The median home value in ZIP 36344 is $168,395. This relatively low price point suggests that the housing market is accessible to a wide range of buyers, including first-time homebuyers and investors seeking to build equity.
Renters make up 28.2% of the total population in this ZIP code. This share points to a significant portion of the community that relies on rental properties, making it a viable option for those interested in the rental market.
The median household income in the area is $60,377. This economic indicator reflects the purchasing power of residents and their ability to afford housing costs, whether through renting or buying.

Investors should take note of the slight discrepancy between the FMR and market rent, which could present opportunities for landlords to adjust their pricing strategies. The median home value and income levels suggest that there is a balance between affordability and demand, making the area attractive for both rental and property investment. Given the substantial renter share, investing in rental properties could be particularly lucrative, as it aligns with the needs of a significant portion of the local population. However, the accessibility of home values also indicates potential for flipping homes or long-term ownership investments, depending on the investor's strategy and risk tolerance.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.