Location: Escambia 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 | $720 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,130 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,130 | $176,392 | 0.64% | D |
| 4BR | $1,520 | $250,335 | 0.61% | D |
U.S. Census Bureau data (2024)
The investment risk assessment for ZIP code 36426 reveals several potential challenges that landlords must consider before entering into a Section 8 rental agreement. Firstly, tenant turnover can be a significant issue due to the disparity between the market rent of $730 and the Fair Market Rent (FMR) of $780 for fiscal year 2026 in the metropolitan area. This gap suggests that tenants might prefer higher-rent properties that offer better value, leading to frequent turnover and associated costs.
Vacancy exposure is another concern, especially given the lack of data on the average days on market (DOM). Without this information, it's difficult to predict how long a property might remain vacant, which could lead to financial strain during periods of non-occupancy.
The deferred maintenance exposure is also noteworthy, considering the typical home value of $136,292 and the median income of $51,417. The lower median income implies that homeowners may delay necessary repairs and maintenance, which could result in higher costs for landlords when taking over such properties.
However, these risks are tempered by the high renter share of 22.6%. A significant portion of the population in ZIP 36426 relies on renting, which typically indicates a higher demand for housing vouchers. This increased demand can provide a stable stream of tenants through the Section 8 program, reducing the likelihood of prolonged vacancies.
In conclusion, the overall risk for a first-time Section 8 landlord in ZIP 36426 is moderate.
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.