Location: Monroe 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 | $700 |
| 1 Bedroom | $700 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,280 | $168,497 | 0.76% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 36460 are driven by the difference between the Subsidized Area Fair Market Rent (SAFMR) and the local market rent. For a two-bedroom apartment in this ZIP code, the SAFMR for the fiscal year 2026 is set at $780. This figure represents the maximum amount that a landlord can expect to receive from the government for a Section 8 voucher tenant. In contrast, the local market rent, based on Census ACS data, is $591.
To understand the actual payment a landlord will receive, it's important to break down the components of the voucher. The voucher system requires tenants to contribute a portion of their income towards rent, typically 30% of their adjusted monthly income. Additionally, there are utility allowances that vary but generally cover part of the tenant's electricity, gas, water, and sewer costs.
The SAFMR of $780 is the ceiling for the combined total of the landlord's payment and the tenant's contribution. If the tenant's share is calculated to be $234, for example, the landlord would receive the remaining amount up to $780. However, the exact amount depends on the tenant's income and any utility allowances included in the voucher.
The utility allowance is a fixed amount added to the base rent subsidy, which varies by region and family size. In ZIP 36460, let's assume the utility allowance for a two-bedroom unit is around $150. Therefore, if the tenant's share is $234, the landlord would receive $780 minus $234, plus the $150 utility allowance, totaling $696.
This analysis shows that landlords in ZIP 36460 may face a reimbursement gap when comparing the SAFMR subsidy to the local market rent. With a local market rent of $591, the typical reimbursement gap for a two-bedroom unit would be $696 - $591 = $105. This means landlords could see an additional $105 per month above the average market rent for a two-bedroom apartment, assuming the tenant's income and utility allowance match the example given.
In summary, the economics of Section 8 in ZIP 36460 favor landlords who can offer competitive rents below the SAFMR. By participating in the program, landlords can secure stable rental income and potentially earn more than the local market average. However, they must be aware of the specific calculations involved in determining the final reimbursement amount.
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.