Location: Daphne-Fairhope-Foley, AL | Metro: Daphne-Fairhope-Foley, AL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,150 |
| 1 Bedroom | $1,270 |
| 2 Bedrooms | $1,390 |
| 3 Bedrooms | $1,800 |
| 4 Bedrooms | $2,280 |
| 5 Bedrooms | $2,645 |
| 6 Bedrooms | $2,962 |
| 7 Bedrooms | $3,199 |
| 8 Bedrooms | $3,359 |
U.S. Census Bureau data (2024)
The ZIP code 36511 presents an interesting scenario for both renters and landlords. The median household income stands at $87,607. However, without specific market rate data, it's challenging to assess how well this income aligns with local rental costs. What we do know is that the Fair Market Rent (FMR) for the area, as determined by the Housing Choice Voucher program for fiscal year 2024, is set at $1200.
Given the median income and the FMR, it becomes evident that there is a significant affordability gap for many residents. A household earning the median income would likely find it difficult to pay the market rate if it exceeds the FMR significantly. This suggests that many renters might rely on government assistance programs to cover their housing expenses.
With 37.3% of the population being renters and a total population of 769, landlords face a competitive landscape where securing tenants could be challenging. The reliance on voucher payments means that landlords must decide whether to participate in the voucher program or focus on attracting cash-paying tenants who might be able to offer higher rents but are fewer in number due to the overall economic conditions.
The takeaway for landlords considering their strategy in ZIP 36511 is clear: participation in the voucher program can ensure a steady stream of tenants, albeit at the fixed rate of $1200. On the other hand, targeting cash-paying tenants could potentially yield higher rental incomes, but it requires a deeper understanding of the local market and possibly offering more amenities or services to attract those who can afford higher rates. Landlords should weigh these options carefully based on the specific dynamics of the ZIP code and their long-term financial goals.
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.