Location: Dale County, AL | Metro: Barbour County, AL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $700 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
U.S. Census Bureau data (2024)
The ZIP code 36374 presents several challenges for potential Section 8 landlords. Tenant turnover is a significant concern, as the market rent stands at $911, while the Fair Market Rent (FMR) for fiscal year 2026 is set at $810. This discrepancy can lead to higher tenant churn, since the subsidized amount might not cover the full market rent, resulting in financial strain on tenants.
Vacancy exposure is another issue to consider. With an average Days on Market (DOM) that is currently not available, it's difficult to predict how long properties might remain vacant. However, given the typical home value of $179,627 and the absence of median income data, it suggests a potentially high cost-to-income ratio for residents, which could exacerbate vacancy rates if tenants struggle to find affordable housing options.
Deferred maintenance is a risk factor in areas where homes are valued at $179,627 but median income data is missing. Without knowing the median income, it's challenging to assess whether residents have the financial capacity to maintain their homes adequately, leading to potential issues with property upkeep.
On the positive side, the ZIP code has a high renter share of 15.0%. High renter density often translates into increased demand for rental properties, including those participating in the Section 8 program. This demand can help mitigate some of the risks associated with vacancy and turnover, as there is a steady pool of potential tenants.
In conclusion, the risks associated with Section 8 investments in ZIP code 36374 are moderate due to the uncertainties around income levels and the potential for higher tenant turnover and vacancy rates. However, the high renter share provides a counterbalance, ensuring a consistent tenant pool.
Data Sources: FMR data from HUD (2027). 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.