Location: Crenshaw County, AL | Metro: Dothan, AL HUD Metro FMR Area
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 | $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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,180 | $157,852 | 0.75% | D |
U.S. Census Bureau data (2024)
The ZIP code 36467 presents several challenges for landlords considering participation in the Section 8 program. Tenant turnover is a significant concern, with market rents at $718 falling well below the Fair Market Rent (FMR) of $860 for FY 2024. This discrepancy suggests that tenants might struggle to afford the higher FMR rates, leading to frequent moves and increased vacancy periods. The vacancy exposure is heightened due to the lack of available data on the number of days properties remain on the market before being rented. This uncertainty makes it difficult to predict how long a property might stay vacant between tenants.
Deferred maintenance is another issue. With a typical home value of $125,761 and a median income of $41,708, many residents might not have the financial capacity to keep their homes in optimal condition. This could result in higher repair costs and maintenance issues for landlords, especially if they take on properties that have been neglected. The financial strain on residents may also affect their ability to pay rent consistently, increasing the risk of non-payment and eviction.
Despite these risks, the high renter share of 25.0% in ZIP 36467 indicates a strong potential for voucher demand. High concentrations of renters often mean a larger pool of tenants eligible for Section 8 vouchers, which can provide a steady stream of rental income. However, landlords should be prepared for the administrative complexity associated with managing Section 8 properties, including navigating the voucher system and adhering to housing quality standards.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.