Location: Monroe County, AL | Metro: Monroe County, AL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
U.S. Census Bureau data (2024)
When considering whether to invest in ZIP code 36445 for Section 8 properties, follow this decision tree based on the provided data:
1) Does the Fair Market Rent (FMR) of $780 clear debt service on a property?
No data is available to determine if the FMR of $780 can cover the debt service costs for a property in ZIP 36445. To make an informed decision, you must assess the specific financials of the property, including mortgage payments, insurance, taxes, and maintenance costs. If these expenses exceed $780 per month, then the answer is no.
2) Is the market rent of $770 (from Census ACS) above, at, or below the FMR?
The market rent of $770 is slightly below the FMR of $780. This suggests that the area might be competitive for Section 8 vouchers since the rent is close to the FMR but still offers some margin. However, landlords should be aware that the slight difference could affect the attractiveness of the property to voucher holders.
3) Are 26.9% of renters combined with the days on market (DOM) sufficient to meet demand?
The percentage of renters in ZIP 36445 is 26.9%, which is relatively low. Additionally, there is no data provided regarding the average DOM for rental listings. A low percentage of renters could indicate limited demand, especially if the DOM is high, suggesting that properties take longer to rent out. For a clear yes or no, landlords need to know the DOM. If the DOM is low, it implies strong demand despite the lower percentage of renters. Conversely, if the DOM is high, the answer would lean towards no, indicating insufficient demand.
To summarize, investing in ZIP 36445 for Section 8 properties hinges on the answers to these questions. The lack of data on debt service and DOM introduces uncertainty. Landlords should gather additional local market data to make a final decision.
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.