Location: Covington County, AL | Metro: Dothan, AL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,340 |
| 5 Bedrooms | $1,554 |
| 6 Bedrooms | $1,740 |
| 7 Bedrooms | $1,879 |
| 8 Bedrooms | $1,973 |
U.S. Census Bureau data (2024)
The market in ZIP code 36453 presents a dynamic scenario that reflects the interplay between rental and homeownership trends. With a Fair Market Rent (FMR) set at $860 for the fiscal year 2024, landlords can align their rental prices with this benchmark to ensure competitiveness and fair returns. However, the current market rent, as per the Census ACS data, stands at $710. This indicates that the actual rents being charged are below the FMR, suggesting either a landlord's willingness to attract tenants or an indication that the local market may not fully support the higher FMR rate.
The median home value in the area is $147,146, which provides insight into the affordability of homeownership relative to rental costs. Given that the median home value is significantly lower than what might be expected based on the FMR, it suggests that there could be a balance between renters and buyers, but the lower market rent implies that rental properties may be more attractive to those who cannot afford the median home price or prefer not to invest in homeownership.
A 14.2% renter share is noteworthy. In areas with a smaller percentage of renters, it often signals less immediate pressure on the rental market, allowing landlords to maintain stable occupancy rates without frequent adjustments. However, this figure also points towards a long-term trend where a significant portion of the population opts for renting over buying. This can create sustained demand for rental properties, especially if the area continues to attract new residents who may prefer or need to rent due to financial constraints or lifestyle choices.
The lack of specific data on price-cut share and days on market (DOM) for rental units makes it challenging to definitively state whether supply outpaces demand or vice versa. However, the gap between the FMR and the actual market rent suggests that demand might be slightly weaker than supply, leading to landlords offering more competitive pricing to secure tenants.
In summary, ZIP 36453 operates under a mixed housing market condition, balancing the interests of both renters and potential homeowners. Landlords should monitor the local economic conditions and the preferences of the resident population to adjust their strategies accordingly, ensuring they remain competitive while maintaining profitability.
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.