Location: Covington County, AL | Metro: Butler 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 36474 are straightforward. The SAFMR (Standard Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2026 is set at $780. This is the maximum amount that a landlord can expect to receive from the housing authority per month for a two-bedroom unit under the Section 8 program.
In comparison, the local market rent for a two-bedroom unit in ZIP 36474 is lower at $747, according to the Census Bureau's American Community Survey (ACS).
A voucher payment is made up of two parts: the tenant's portion and the utility allowance. Typically, the tenant contributes 30% of their adjusted income towards rent. If we assume an average tenant income that results in a contribution of $200, then the housing authority would cover the remaining $580 of the SAFMR, bringing the total to the $780 maximum allowed.
The utility allowance is an additional sum provided by the housing authority to help cover electricity, gas, water, and sewer costs. For ZIP 36474, the utility allowance for a two-bedroom unit is generally around $150. This means that the landlord will receive approximately $730 per month from the combination of the housing authority payment and the tenant's contribution.
Note that the SAFMR is specifically tailored for this ZIP code, ensuring that it reflects the local rental market conditions more accurately than a broader metro or county-wide figure might.
In ZIP 36474, landlords participating in the Section 8 program for a two-bedroom unit will see a surplus of about $33 per month. This surplus is calculated by subtracting the local market rent ($747) from the total expected payment ($780). Thus, landlords receive more than the average market rent, providing a financial advantage over non-voucher rentals.
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.