Location: Covington County, AL | Metro: Conecuh 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 | $740 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,230 | $253,910 | 0.48% | F |
U.S. Census Bureau data (2024)
The ZIP code 36421 is a moderate renter-heavy area, with 19.4% of its 9,799 residents being renters. This suggests there is a decent demand for rental properties, but it is not overwhelmingly dominated by renters. The median household income in this area stands at $65,801, indicating a middle-class population. The market rent for this ZIP is $794, which represents approximately 12% of the median household income when considering a monthly basis. This calculation is derived from dividing the annual median income by 12 and then comparing it to the market rent.
The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $800, closely matching the current market rent of $794. This parity suggests that the rental market in ZIP 36421 is aligned with federal standards, making it a viable location for Section 8 tenants who rely on housing vouchers. However, the slight difference between the market rent and the FMR could indicate some flexibility for landlords who wish to adjust their rents slightly above or below the FMR without alienating potential tenants.
A landlord in ZIP 36421 should anticipate a tenant profile characterized by individuals and families who are likely to be reliant on Section 8 vouchers. These tenants will generally have lower incomes, possibly around or below the median household income of $65,801. They may include working adults, single parents, and elderly individuals who require financial assistance to afford housing. Given the alignment between the market rent and the FMR, landlords can expect a steady stream of qualified applicants seeking affordable housing options.
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.