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 | $690 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,270 | $216,134 | 0.59% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP 36350, located in Dale County, AL, reveals several key insights for landlords and small-portfolio investors.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for the zip code in fiscal year 2024 is set at $860, which is slightly higher than the market rent of $839 reported by the Census Bureau's American Community Survey (ACS). This indicates that rental properties priced at the FMR level can still be competitive in the local market, but landlords must ensure their costs align with this pricing to maintain profitability.
The second question concerns the affordability of acquisitions. With a median home value of $201,500, the cost of purchasing a property in this area is relatively low compared to many other regions. However, the lack of available data on days on market (DOM) and the fact that only 0.2% of homes have been listed with a price cut suggest that the housing market might be tight, with fewer distressed properties available for purchase at reduced rates. This implies that potential acquisitions will likely need to be made at near-market values, which could be a challenge for investors looking to maximize their return on investment through low-cost purchases.
The third question pertains to tenant demand. ZIP 36350 has a total population of 7,659, with 45.4% of residents being renters. This substantial renter share points to a viable tenant pool, ensuring that rental units are likely to be occupied consistently. Given the population size, it's important to note that while the demand exists, it is limited by the overall number of potential tenants.
In summary, ZIP 36350 presents a balanced opportunity for real estate investors. The rent math is favorable, with the FMR slightly above market rates, allowing for competitive pricing. Acquisition costs are reasonable, though the market appears to be tight with few discounted properties. Tenant demand is strong, driven by a significant renter share of the population. However, the limited population size means that landlords must manage their properties effectively to attract and retain tenants, ensuring steady occupancy and cash flow.
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.