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 | $780 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,250 | $239,799 | 0.52% | F |
| 4BR | $1,420 | $348,747 | 0.41% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 36352 reveals a market that offers a balance between yield and stability, making it suitable for both high-yield strategies and steady cash flow investments.
The Federal Market Rent (FMR) for ZIP 36352 in fiscal year 2024 is set at $860, which is higher than the market rent of $809. This indicates a potential for higher rental yields when properties are rented out at the FMR rate. Given that the median home value in this area is $253,314, landlords can expect a decent return on investment if they can secure tenants willing to pay the FMR.
Stability in the market can be gauged by the percentage of renters and the average daily occupancy rate (DOM). In ZIP 36352, 18.5% of residents are renters, which is a moderate figure suggesting a stable demand for rental housing. However, the lack of data on daily DOM could imply variability in how quickly homes are rented out, potentially affecting the consistency of cash flows.
Average household income in ZIP 36352 stands at $71,997. This income level supports the ability of residents to pay rents close to the FMR, thereby enhancing the stability of rental payments.
To classify the market, consider the following:
In conclusion, ZIP 36352 presents a market that leans towards steady cash flow rather than a high-yield/low-stability flip-style strategy. The key figures driving this assessment are the $860 FMR versus the $809 market rent, and the $71,997 average income supporting rent payment capabilities. While there is potential for higher yields, the moderate stability factors indicate that a focus on long-term, consistent rental income is advisable.
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.