Location: Monroe County, AL | Metro: Monroe County, AL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,310 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 36425 reveals a unique blend of yield potential and stability, making it an interesting market for real-estate investment, particularly for those focused on Section 8 properties. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $820. This figure represents the maximum amount that a Section 8 tenant can pay for rent, which is crucial for calculating potential rental yields.
Despite the lack of specific market and home value data, the FMR stands out as a reliable indicator for yield potential. With 18.0% of residents being renters, there is a notable segment of the population who could be eligible for Section 8 assistance. However, the absence of days on market (DOM) data limits our understanding of how quickly properties might turn over, which is important for assessing liquidity and market demand.
The median household income of $37,750 provides insight into the economic stability of the area. This income level suggests that while the area may not be affluent, it supports a stable demand for affordable housing. Given the FMR of $820, landlords can expect to receive a consistent rental income from Section 8 tenants, assuming the property meets the necessary criteria and the rent does not exceed the FMR.
Based on the available data, ZIP 36425 leans towards a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The primary driver for this classification is the combination of a defined FMR and a median income that supports a sustainable rental environment. While the percentage of renters is relatively low at 18.0%, this still indicates a reliable tenant pool for Section 8 properties. The lack of market and home value data prevents a comprehensive assessment of yield potential beyond the FMR, but the income figure suggests stability in rental payments.
To summarize, the investment in ZIP 36425 should focus on the long-term benefits of steady cash flow rather than short-term gains through rapid property turnover. Landlords and small-portfolio investors looking to capitalize on the guaranteed rental income provided by Section 8 tenants would find this ZIP code suitable for their investment strategy.
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.