Section 8 Fair Market Rent (FMR) for ZIP 36502 - 2027

Location: Monroe County, AL | Metro: Daphne-Fairhope-Foley, AL MSA

Investment Score for ZIP 36502

Monthly Rent (2BR)

$1,220

Median Price (2BR)

$127,996

1% Rule

0.95%

Annual Yield

11.44%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

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

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,220	$127,996	0.95%	C
3BR	$1,530	$192,555	0.79%	D
4BR	$1,960	$257,514	0.76%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

15,558

Median Household Income

$44,360

Housing Units

7,284

Renter Percentage

35.8%

Occupancy Rate

79.3%

Renter Occupied

2,068

The economics of Section 8 housing in ZIP code 36502, located in Atmore, Alabama, Escambia County, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for FY 2024 is set at $1090. This figure represents the maximum amount that the government will reimburse landlords for renting out a two-bedroom unit under the Section 8 program.

Local market rents, according to Census ACS data, average $782 for a similar two-bedroom apartment. This difference between the SAFMR and the actual market rates can be advantageous for landlords participating in the program, as they receive a higher reimbursement compared to the typical market rate.

To understand the actual payment a landlord receives, consider the following breakdown:

Tenant Portion: Tenants are required to pay 30% of their adjusted income towards rent. For example, if a tenant's adjusted monthly income is $1000, they would contribute $300 towards the rent.
Voucher Reimbursement: The government covers the remaining portion up to the SAFMR limit. In our example, the government would reimburse the landlord $790 ($1090 - $300).
Utility Allowances: Utility allowances are also part of the voucher system but are paid directly to the tenant. These allowances vary based on the number of bedrooms and the location. For a two-bedroom apartment, the utility allowance typically does not exceed $300 per month, depending on the specific circumstances and the season.

In summary, for a two-bedroom apartment in ZIP 36502, the landlord can expect a total reimbursement of $790 from the government, assuming the tenant contributes $300 based on their income. When combined with the utility allowance paid to the tenant, the total economic impact for the landlord is significantly better than the local market rate, which stands at $782.

This creates a surplus for the landlord of $308 per month when considering only the rental component ($1090 - $782). However, landlords must also factor in the utility allowance, which further increases the overall benefit of participating in the Section 8 program in this area.

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.