Location: Dale 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 | $700 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,160 |
| 4 Bedrooms | $1,310 |
| 5 Bedrooms | $1,520 |
| 6 Bedrooms | $1,702 |
| 7 Bedrooms | $1,838 |
| 8 Bedrooms | $1,930 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,160 | $245,455 | 0.47% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 36345 are defined by the SAFMR (Small Area Fair Market Rent) which is set specifically for this ZIP code. For a two-bedroom apartment, the SAFMR for FY 2024 is $1010. However, it's important to note that the local market rent, based on Census ACS data, is significantly lower at $794.
A Section 8 voucher does not cover the entire rent amount. Instead, it reimburses the landlord for the difference between the tenant's contribution and the approved rent amount, up to the SAFMR limit. The tenant typically pays 30% of their adjusted income towards rent, plus any applicable utility allowances. This means if the tenant's income is $2000 per month, they would pay approximately $600 towards rent and utilities.
To illustrate, let's assume the tenant's share is $600 and the total rent is $1010. The voucher would cover the remaining $410. However, the actual reimbursement can be less if the total rent exceeds the SAFMR. In such a case, the voucher would only cover up to $1010 minus the tenant's $600 payment, leaving the landlord with a reimbursement of $410.
The utility allowances vary but are generally around $150-$200 per month. If we use an allowance of $175, then the total covered by the voucher would be $1185 ($1010 rent + $175 utilities). Since the local market rent is $794, landlords could potentially receive the full market rent plus a utility allowance, totaling $969 ($794 + $175).
In ZIP 36345, the typical reimbursement gap or surplus for a two-bedroom apartment is a surplus. Landlords can expect to receive about $175 more than the local market rent when factoring in the utility allowance. This makes Section 8 vouchers a viable option for landlords who want to ensure steady rental income while participating in a government program aimed at providing affordable housing.
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.