Location: Clarke County, AL | Metro: Clarke County, AL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $700 |
| 1 Bedroom | $700 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,200 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 36524 is centered around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2026, the FMR stands at $780, whereas the Census ACS data indicates that the market rent is $646. This results in a gap of $134, which represents an approximate 17.7% difference between the two figures.
Given that the FMR exceeds the market rent, landlords and small-portfolio investors should recognize that this creates a yield opportunity. Voucher tenants can provide a stable and predictable income stream, as their rent is subsidized to match the FMR. In ZIP 36524, where 25.7% of residents are renters, this means that there is a significant portion of the population who might be eligible for the Section 8 program. The median home value of $124,851 and median income of $45,962 further highlight the affordability challenges faced by many renters, making the Section 8 vouchers particularly attractive.
The higher FMR compared to the market rent suggests that landlords can potentially increase their rental income without raising the rent above what voucher recipients are willing to pay. This scenario allows property owners to capitalize on the subsidy while maintaining competitive pricing in the local rental market. It's important to note that the increased income from voucher tenants does not come with additional risks typically associated with higher rent increases, such as tenant turnover or delinquency.
In summary, the $134 gap between the FMR and market rent in ZIP 36524 presents a compelling yield play for landlords and small-portfolio investors. Leveraging the Section 8 program can lead to higher, more stable rental income without exceeding the financial capabilities of the local rental market.
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.