Location: Washington County, AL | Metro: Choctaw County, AL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $700 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
U.S. Census Bureau data (2024)
11.4% of the residents in ZIP code 36558 are renters, indicating a modest demand for rental properties. The Fair Market Rent (FMR) for the area, as set by HUD for fiscal year 2024, is $960, which serves as a benchmark for landlords and investors setting their rental rates. However, the actual market rent, based on Census ACS data, is $650, suggesting that there is room for price increases but also highlighting the current affordability of the rental market.
$170,405 is the median home value in this ZIP code, reflecting a stable housing market that is neither overheated nor depressed. This figure provides a useful reference point for understanding the overall property values and can inform decisions regarding investment in single-family homes or conversions.
$63,967 is the median income in ZIP 36558, which is a critical factor in assessing the financial health of potential tenants and the viability of rental income. Given the renter share and median income, landlords can expect a reasonable pool of tenants who can afford the average market rent, although some may qualify for the higher FMR rate.
The data does not provide specific days on market (DOM) or the percentage of listings that have been price-cut, making it challenging to assess the speed at which properties are selling or the competitiveness of the market. Nonetheless, the gap between the FMR and market rent suggests that there might be opportunities for landlords to increase their rents while still remaining competitive and attractive to tenants.
In conclusion, the rental market in ZIP 36558 offers a balanced environment where landlords can achieve fair returns without pricing themselves out of the market. The Section 8 program, with its FMR of $960, can serve as a reliable source of tenants for those willing to participate, ensuring steady occupancy and income. For small-portfolio investors, this ZIP code presents a stable investment opportunity with clear financial parameters.
Verdict: ZIP 36558 is a viable option for Section 8 investments, given the alignment between FMR and local tenant affordability.
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.