Section 8 Fair Market Rent (FMR) for ZIP 36456 - 2027

Location: Covington County, AL | Metro: Butler County, AL

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$710
1 Bedroom	$710
2 Bedrooms	$920
3 Bedrooms	$1,160
4 Bedrooms	$1,340
5 Bedrooms	$1,554
6 Bedrooms	$1,740
7 Bedrooms	$1,879
8 Bedrooms	$1,973

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

1,491

Median Household Income

$66,150

Housing Units

833

Renter Percentage

28.8%

Occupancy Rate

63.3%

Renter Occupied

152

A landlord considering ZIP 36456 for Section 8 investments must evaluate several factors to make an informed decision. The first step is to determine if the Fair Market Rent (FMR) of $780 can cover the debt service on a property valued at $115,567.

If the answer is yes: The FMR of $780 is sufficient to meet the debt service requirements, which is a positive indicator for investment. Next, assess whether the market rent of $588 is above, at, or below the FMR.

If market rent is above FMR: This suggests that properties in ZIP 36456 could be rented out at rates higher than what is covered by Section 8, indicating strong potential for non-Section 8 tenants. However, the demand must still be evaluated. With 28.8% of residents being renters and the days on the market (DOM) being listed as N/A, there is likely a stable rental market. The lack of specific DOM data means it does not negatively impact the decision, but it does not provide a clear advantage either. In this case, the answer is it depends. Landlords should consider the overall rental demand and vacancy rates to ensure that they can find tenants willing to pay market rates.
If market rent is at or below FMR: The market rent aligns closely with or falls below the FMR, making Section 8 a viable option for finding tenants. Given the 28.8% of residents who are renters, there is a steady demand for rental properties. The N/A DOM data does not affect the decision directly, but it implies that there is no excessive time spent on finding tenants. Therefore, the answer is yes. Landlords can confidently invest in ZIP 36456 knowing that Section 8 tenants will likely be able to afford the rent and that there is sufficient demand for rental units.

If the answer is no: The FMR of $780 cannot sufficiently cover the debt service on a $115,567 property. This makes ZIP 36456 a poor choice for Section 8 investment, regardless of market rent or rental demand. The answer is no. Landlords should look elsewhere where the FMR can better support the financial obligations associated with property ownership.

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.