Location: Monroe County, AL | Metro: Daphne-Fairhope-Foley, AL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $990 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,960 |
| 5 Bedrooms | $2,274 |
| 6 Bedrooms | $2,547 |
| 7 Bedrooms | $2,751 |
| 8 Bedrooms | $2,889 |
U.S. Census Bureau data (2024)
To effectively integrate ZIP 36480 into a Section 8 portfolio strategy, consider it primarily as a diversifier. The ZIP code, located in Monroe County, Alabama, has a 5.2% renter share and a median income of $49,342. These figures indicate a modest level of demand for rental properties and suggest that the area is not dominated by high-income earners.
The Fair Market Rent (FMR) for ZIP 36480 in fiscal year 2024 is set at $1360 for a one-bedroom unit. This figure serves as a benchmark for landlords participating in the Section 8 program. However, due to the lack of specific market data such as the market rate and median home value, it's challenging to assess whether this ZIP code can act as a cash-flow anchor or an appreciation play. Without these details, we cannot determine the spread between the FMR and the market rate, nor can we evaluate the potential for property value appreciation based on price-cut shares and days on market (DOM).
Given the limited information, focusing on ZIP 36480 as a diversifier makes strategic sense. Diversification helps mitigate risks associated with economic downturns or changes in local housing markets. With a median income of $49,342, there is a stable tenant base that can support rental payments without significant financial strain. This stability ensures a consistent cash flow, which is crucial for any investment portfolio.
Moreover, the 5.2% renter share suggests that while the majority of residents may own their homes, there is still a notable portion of the population seeking rentals. This mix of homeowners and renters provides a balanced environment where rental properties can thrive alongside owner-occupied homes, reducing the dependency on a single type of housing demand.
In summary, ZIP 36480 is best suited as a diversifier within a Section 8 portfolio strategy. It offers a reliable tenant pool with a median income that supports rental payments and a moderate renter share that indicates a steady but not overwhelming demand for rentals. Landlords and small-portfolio investors should leverage this ZIP code to enhance the resilience and balance of their investment portfolios.
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.