Location: Dale County, AL | Metro: Coffee County, AL
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 | $670 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $920 | $103,174 | 0.89% | C |
| 3BR | $1,280 | $163,305 | 0.78% | D |
| 4BR | $1,540 | $222,620 | 0.69% | D |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 36360, Ozark, AL, within Dale County, reveals a favorable environment for rental properties. The HUD Fair Market Rent (FMR) for the area is set at $780 for fiscal year 2026, which is notably higher than the Census ACS reported market rent of $687. This discrepancy means that voucher tenants will generally cashflow at the FMR rate, providing a stable income stream above typical market rates.
To further analyze the investment potential, consider the median home value of $144,285. The rent-to-price ratio, calculated using the HUD FMR, is approximately 1.9%, indicating a relatively low cost of ownership compared to rental income. This makes it attractive for both rental and potential buy-and-hold strategies, especially for those looking to capitalize on the difference between voucher rates and market rents.
The dynamics of the local real estate market also support the rental angle. With a median Days on Market (DOM) of N/A and a negligible 0.2% share of homes making price cuts, it suggests a strong seller's market where homes are selling quickly without significant discounts. This implies that the local housing market is stable, with little pressure to lower asking prices, which supports maintaining higher rental rates.
In conclusion, the strongest angle for investors in ZIP 36360 is cashflow. The ability to secure tenants with vouchers paying above the market rent ensures a steady and reliable income, making it an excellent choice for landlords and small-portfolio investors seeking financial stability and positive cash flow from their investments.
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.