Location: Daphne-Fairhope-Foley, AL | Metro: Daphne-Fairhope-Foley, AL MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,010 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,590 |
| 4 Bedrooms | $2,010 |
| 5 Bedrooms | $2,332 |
| 6 Bedrooms | $2,612 |
| 7 Bedrooms | $2,821 |
| 8 Bedrooms | $2,962 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,230 | $274,948 | 0.45% | F |
| 3BR | $1,590 | $354,139 | 0.45% | F |
| 4BR | $2,010 | $459,650 | 0.44% | F |
U.S. Census Bureau data (2024)
The median income in ZIP 36530, which encompasses Elberta, Alabama, stands at $63,393. Considering the market rate for rent is $1,144, it becomes evident that the financial landscape here poses significant challenges for renters. To contextualize this, let's break down the numbers.
A household earning the median income would spend approximately 21.5% of their monthly earnings on rent at the market rate. This is calculated by taking the annual median income ($63,393) and dividing it by 12 months, then comparing that to the $1,144 market rate. The formula looks like this: ($63,393 / 12) / $1,144 = 0.215 or 21.5%. This percentage exceeds the general guideline that housing costs should not exceed 30% of a household's gross income, indicating that rent is already a substantial portion of the average income.
When we look at the Housing Choice Voucher program, which aims to provide affordable rental housing for low-income families, the Fair Market Rent (FMR) for ZIP 36530 is set at $1,110 for fiscal year 2024. This figure is slightly below the market rate but still represents a considerable expense for those receiving vouchers. It means that even with a voucher, a household would be spending nearly 21.1% of their income on rent, assuming the voucher covers the full FMR amount.
The population of Elberta is 7,409, with 19.1% being renters. This translates to roughly 1,416 individuals who rely on renting as their primary form of housing. Given the tight margins between median income and both market and voucher rates, there exists an affordability gap that affects the competition among landlords. Tenants are likely to prioritize cost over amenities, leading to a competitive environment where landlords must balance rent prices with the need to attract tenants.
The takeaway for landlords is that focusing solely on cash-paying tenants may limit their pool of potential renters, given the high cost of rent relative to income. Engaging with the voucher program can help fill units and ensure steady, reliable payments, although it might mean accepting a slightly lower rent. Landlords should weigh the benefits of voucher stability against the risks of higher vacancy rates among cash-paying tenants who struggle with affordability.
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.