Location: Monroe County, AL | Metro: Monroe County, AL
| 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 |
U.S. Census Bureau data (2024)
To integrate ZIP 36481 into a Section 8 portfolio strategy, focus on its role as a diversifier. This ZIP code, located in Monroe County, Alabama, has a significant renter share at 12.8%, indicating a robust demand for rental properties. The median income in this area is $33,125, which aligns well with the Federal Market Rent (FMR) set at $780 for the metro area in fiscal year 2026. Given that the market and median home values are currently unavailable, it's prudent to lean towards a diversification strategy rather than relying solely on cash flow or appreciation potential.
The diversification approach is particularly advantageous because it allows landlords and small-portfolio investors to balance their investments across different risk profiles. ZIP 36481 offers a steady stream of tenants who can afford the rents based on the FMR, ensuring consistent occupancy and rental income. While the appreciation potential cannot be fully assessed without additional data, the strong tenant demand suggests that property values are likely stable, if not gradually increasing over time, making it a reliable addition to a diversified portfolio.
Key Points:
In conclusion, ZIP 36481 serves best as a diversifier within a Section 8 portfolio strategy due to its reliable tenant base and alignment with the FMR, providing a stable and predictable investment opportunity. This ZIP code can act as a cushion against volatility in other parts of an investor’s portfolio, offering a secure and consistent source of rental income.
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.