Location: Washington County, AL | Metro: Washington County, AL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,420 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $960 for ZIP 36581 can cover the mortgage on a home in the area. The median home value in ZIP 36581 is above the state average, but specific figures are not provided. Without knowing the exact median home value, it's difficult to assess if a mortgage can be covered by the FMR.
The investor could also doubt if there is sufficient rental demand at 35.4%. According to the data, rentals in ZIP 36581 are primarily 3+ bedroom units, typically costing less than $200 per month including utilities. This suggests that the rental market is geared towards smaller units, which may not align with the higher FMR. However, the percentage of renters indicates a moderate level of demand, though not exceptionally high.
Another concern is whether housing vouchers will keep pace with the market rents. The data does not provide specific information regarding voucher amounts or their trend in relation to market rents. Therefore, it's challenging to definitively state if vouchers will remain competitive in the rental market of ZIP 36581.
In summary, while ZIP 36581 shows some promising characteristics for rental investment, such as a median home value above the state average and a rental market focused on affordable units, the lack of precise figures for median home value and voucher trends makes it difficult to fully address the investor's concerns. The rental demand, however, is present at a moderate level, indicating potential stability in the market.
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.