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 | $207,603 | 0.59% | F |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP code 36375 is set to maintain a stable environment over the next 12-24 months, with implications for both pricing power and investment strategy. The median home value currently stands at $173,790, indicating a modest price point that aligns well with the area's economic profile. This figure, combined with the fact that only 0.3% of listings have seen reductions, suggests that sellers are holding firm on their asking prices, reflecting a market where buyers are willing to meet or slightly exceed listed values.
The median Days on Market (DOM) being listed as N/A could imply either an extremely fast-moving market where homes sell quickly, or it might suggest that there is limited data available to accurately determine this metric. In either case, the low percentage of reduced listings supports the notion of strong seller demand and potentially less inventory, which can bolster pricing power.
On the rental side, the Fair Market Rent (FMR) for ZIP 36375 is projected to be $890 for fiscal year 2024, compared to the current market rate of $828 based on Census ACS data. This indicates a potential increase in rental income for property owners, making rental properties more attractive to investors looking to capitalize on this trend. However, the gap between FMR and actual market rates also suggests that the rental market may be underpricing relative to government standards, providing an opportunity for landlords to gradually adjust rents upwards without significant pushback from tenants.
For long-term investors, the setup implies a moderate appreciation thesis. The current conditions, characterized by stable home values and a slight upward pressure on rents, suggest that while rapid appreciation may not be imminent, steady growth is likely. This makes ZIP 36375 a viable option for those seeking a consistent return on investment rather than speculative gains.
A summary of the key points:
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.