Location: Washington County, AL | Metro: Washington County, AL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $700 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,230 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 36548 within the Washington County, AL metro area reveals a complex landscape. The HUD Fair Market Rent (FMR) for the region is set at $960 per month for the fiscal year 2024. However, the market rent data for this area is currently unavailable, making it challenging to provide a direct comparison between the FMR and the actual rents being charged.
To determine whether voucher tenants will cashflow at the FMR, marginally, or only with premium units, we must rely on the FMR figure alone. Given that the median home value in the area is also not available, deriving an accurate rent-to-price ratio is impossible. This lack of specific local data can be a significant barrier for investors looking to make informed decisions based on the financial performance of properties.
The absence of day Median Days on Market (DOM) and percentage of price-cut share further complicates the understanding of how quickly properties sell versus how long they remain vacant as rental units. Typically, these metrics would help us gauge the health of the housing market and the potential challenges in attracting and retaining tenants.
In the context of Section 8 investments, the primary focus often shifts towards the stability and predictability of income rather than the potential for high cash flow or rapid appreciation. The guaranteed nature of Section 8 vouchers means that once a property is approved and occupied, it will receive consistent rental payments, which can be particularly appealing in areas with uncertain market conditions.
The strongest investor angle in ZIP 36548 is likely stability, given the reliance on the guaranteed income stream from Section 8 vouchers.
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.