Location: Dallas County, AL | Metro: Montgomery, 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 | $700 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,290 |
| 5 Bedrooms | $1,496 |
| 6 Bedrooms | $1,676 |
| 7 Bedrooms | $1,810 |
| 8 Bedrooms | $1,901 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,270 | $123,233 | 1.03% | B |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 36703 in fiscal year 2024 is set at $880. This figure represents the maximum amount that a landlord can receive through the Section 8 program for renting a unit in this area. It's important to note that this is not the actual rent you would charge your tenant; it's the payment standard used by the Housing Choice Voucher program.
To put this into perspective, the average rent in ZIP 36703, according to Census American Community Survey data, is $725. This means that if you're participating in Section 8, you could potentially receive a higher payment for your rental property compared to the market average. However, you must ensure that your rent does not exceed the $880 limit.
The demand for rental properties in this area is significant, with 42.5% of households being renters. This indicates a strong market for rentals, which could be beneficial if you're looking to fill your property quickly. The median household income in ZIP 36703 is $62,456, which suggests that the local economy supports a moderate level of affordability for housing, but many residents still rely on assistance programs like Section 8 to secure housing.
When acquiring a property for Section 8, you should consider the median home value in relation to the income levels. Given the median household income, homes priced around or below $150,000 would likely be most attractive to potential tenants who qualify for Section 8 assistance. However, the actual acquisition cost will depend on the condition and size of the property you wish to purchase.
Before making a decision to enter the Section 8 market, you should verify that your property meets all the necessary requirements for the program. This includes ensuring the unit passes a housing quality standards (HQS) inspection and that the rent you charge is reasonable and comparable to similar units in the area. While the FMR sets an upper limit, your rent should also reflect the actual market conditions to avoid disputes with the housing authority.
In summary, with an FMR of $880, you have a defined ceiling for rental payments through Section 8 in ZIP 36703. The local average rent of $725 provides a benchmark for pricing, while the 42.5% renter share highlights a robust demand for rentals. Understanding these factors, along with verifying HQS compliance, will help you make an informed decision about adding a Section 8 rental to your portfolio.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.