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 | $1,380 |
| 1 Bedroom | $1,540 |
| 2 Bedrooms | $1,680 |
| 3 Bedrooms | $2,170 |
| 4 Bedrooms | $2,750 |
| 5 Bedrooms | $3,190 |
| 6 Bedrooms | $3,573 |
| 7 Bedrooms | $3,859 |
| 8 Bedrooms | $4,052 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,540 | $335,074 | 0.46% | F |
| 2BR | $1,680 | $372,464 | 0.45% | F |
| 3BR | $2,170 | $414,096 | 0.52% | F |
| 4BR | $2,750 | $567,963 | 0.48% | F |
| 5BR | $3,190 | $779,039 | 0.41% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 36532, Fairhope, Alabama, involve understanding the relationship between the SAFMR (Small Area Fair Market Rent) and the local market rent. For a two-bedroom apartment in this ZIP code, the SAFMR for FY 2024 is set at $1580. This figure is specific to this ZIP code and reflects the rental assistance amount the government will cover.
Local market rents, as measured by ZORI (Zillow Observed Rent Index), run higher at $2080 per month. This discrepancy highlights the financial considerations for landlords participating in the Section 8 program. Here's a breakdown of how a voucher payment works:
The typical reimbursement gap for a two-bedroom unit in ZIP 36532 is $2080 - $1580 = $500. This means landlords would have to make up the difference between the SAFMR and the local market rent. Conversely, if a landlord charges less than the SAFMR, there would be no surplus; the reimbursement would simply match the lower rent charged.
In summary, landlords in ZIP 36532 should expect a fixed reimbursement of $1580 for a two-bedroom unit, which includes the tenant's $450 contribution and the housing authority's $1130 reimbursement. This leaves a gap of $500 compared to the local market rent of $2080, reflecting the economic realities 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.