Location: Dothan, 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 | $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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,230 | $175,645 | 0.7% | D |
U.S. Census Bureau data (2024)
The real estate market in ZIP code 36370 presents a nuanced landscape for landlords and small-portfolio investors, particularly when considering the median home value of $159,676. This figure suggests that the area remains relatively affordable, which could attract first-time buyers and investors looking for entry-level properties. However, the lack of data on the percentage of listings being reduced and the median days on market (DOM) indicate stability in pricing power over the next 12-24 months. Landlords can expect to maintain their current rents without significant downward pressure from competing properties.
On the rental side, the Forward Moving Rent (FMR) for ZIP 36370 in fiscal year 2024 is projected at $860, while the current market rent stands at $589 according to the Census ACS. This discrepancy signals a potential upward adjustment in rental rates, aligning them closer to the FMR. As market conditions evolve, landlords might consider incrementally increasing their rents to approach the FMR level, thereby maximizing returns on investment. The gap also highlights a possible opportunity for new construction or renovations, aimed at capturing the higher end of the rental market.
For long-term investors, the setup in ZIP 36370 suggests a realistic appreciation thesis. With an affordable median home value and a growing disparity between market rents and FMRs, the area may experience gradual price increases as demand for housing rises. This scenario supports the notion that properties held for extended periods could see a steady increase in value, making it a viable strategy for those seeking capital appreciation alongside rental income. However, the lack of specific historical appreciation percentages means that this thesis is based on broader market trends rather than precise local data.
To summarize, the current median home value, stable listing reductions, and median DOM suggest that landlords and investors in ZIP 36370 can maintain their pricing power and potentially adjust rents upward. Long-term appreciation appears likely but should be approached with caution given the limited historical data available.
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.