Location: Washington County, AL | Metro: Washington County, AL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $700 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
U.S. Census Bureau data (2024)
In ZIP code 36538, the Section 8 economics operate under specific guidelines that directly impact landlords and small-portfolio investors. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2024 is set at $960. This figure represents the maximum amount that the housing authority will pay on behalf of a tenant receiving Section 8 assistance.
The SAFMR is specifically tailored to reflect the rental market conditions within ZIP 36538, ensuring that the rate is set for this particular area rather than being uniform across a larger geographical region. This means that landlords in this ZIP code can expect payments based on this localized rate, which is designed to be competitive with the actual rents charged for similar units in the area.
To understand the actual economic impact on a landlord, it's crucial to factor in the tenant portion and utility allowances. Under the Section 8 program, tenants are required to contribute a portion of their income towards rent, typically around 30%. If we assume an average tenant income that translates to a contribution of $300 per month, then the total rent collected from the tenant and the housing authority would be $1,260. However, this calculation assumes the tenant’s income fits the standard contribution model; individual circumstances may vary.
The utility allowances can also play a significant role in the overall reimbursement. These allowances are additional funds provided to cover utilities and are determined based on the location and size of the unit. For ZIP 36538, while the exact allowance isn't specified, it generally ranges between $100 to $200 per month. Thus, if the utility allowance is $150, the total reimbursement could potentially reach $1,110.
However, without specific data on the local market rent for ZIP 36538, it's challenging to provide an accurate comparison. But assuming the market rent is higher than the SAFMR, landlords might face a reimbursement gap. For instance, if the market rent for a two-bedroom unit is $1,000, the landlord would receive $960 from the housing authority plus the tenant's contribution of $300, totaling $1,260. With a utility allowance of $150, the landlord would effectively receive $1,110, creating a surplus of $110 above the market rent.
Conversely, if the market rent is lower than the SAFMR, landlords could benefit from a higher reimbursement rate, leading to a surplus. In ZIP 36538, given the SAFMR of $960, landlords should ensure their rent pricing aligns closely with this figure to avoid any gaps and maximize the financial benefits of renting to tenants with Section 8 vouchers.
In summary, for a two-bedroom unit in ZIP 36538, landlords can expect a reimbursement of up to $960 from the housing authority. Once the tenant's contribution and utility allowances are added, the total reimbursement can exceed the SAFMR, providing a potential surplus depending on the local market conditions.
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.