Location: Covington County, AL | Metro: Covington County, AL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,180 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 36455 are straightforward. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for fiscal year 2026 is set at $780. This means that the maximum amount a landlord can receive from the housing authority for a two-bedroom unit under the Section 8 program is $780 per month. However, the local market rent, based on Census ACS data, is lower at $708.
To understand how the voucher system works, it's important to know that the total rent is split between the tenant and the housing authority. The tenant is responsible for paying approximately 30% of their adjusted income towards rent, plus any additional utility allowances. For instance, if the tenant's share is $234 (30% of an assumed income), and there's a utility allowance of $100, the landlord will receive these amounts from the tenant directly. The housing authority then covers the difference up to the SAFMR limit of $780.
In practice, this means that for a two-bedroom apartment, the landlord would receive $234 from the tenant and $100 for utilities, totaling $334. The housing authority would pay the remainder of the SAFMR, which in this case would be $446 ($780 - $334).
This creates a reimbursement gap or surplus when compared to the local market rent. Since the local market rent is $708, and the landlord receives a total of $780 from the tenant and housing authority combined, there is a surplus of $72 per month for a two-bedroom apartment in ZIP 36455. This surplus indicates that landlords participating in the Section 8 program for this ZIP code could potentially earn slightly more than the average market rent for similar properties.
However, landlords should also consider other factors such as the potential for longer tenancy stability and the administrative requirements of the program. The surplus of $72 per month for a two-bedroom apartment makes the Section 8 program financially viable for landlords in ZIP 36455, despite the lower local market rent.
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.