Location: Marengo County, AL | Metro: Marengo County, AL
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 | $810 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,280 |
| 5 Bedrooms | $1,485 |
| 6 Bedrooms | $1,663 |
| 7 Bedrooms | $1,796 |
| 8 Bedrooms | $1,886 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,220 | $194,421 | 0.63% | D |
U.S. Census Bureau data (2024)
A household in ZIP code 36732, with a median income of $42,216, faces significant challenges in affording the market rate rent of $692. This figure represents the average rental cost according to Census ACS data. When compared to the Fair Market Rent (FMR) set at $780 for metro FY 2026, it becomes evident that the gap between market rates and the FMR is substantial. The FMR is the amount of money that HUD determines is necessary to cover the rent and utilities for a modest apartment in a given area.
In ZIP 36732, where approximately 39.9% of the 8,387 residents are renters, the affordability gap has a direct impact on the competitive landscape for landlords. Many renters might find it difficult to meet even the lower market rate of $692, let alone the higher FMR of $780. This means that landlords who rely solely on market-rate rents could face challenges in attracting tenants, especially those who do not qualify for housing assistance.
The takeaway for landlords considering their strategy regarding voucher acceptance versus cash-paying tenants is clear. Accepting vouchers can provide a steady stream of income, albeit at the FMR rate of $780, which is higher than the current market rate. However, landlords must weigh this against the administrative burden and potential restrictions that come with participating in the voucher program. For those who choose to focus on cash-paying tenants, understanding the local economic conditions and adjusting rents accordingly to remain competitive is crucial. Given the high percentage of renters and the limited median income, landlords should consider offering flexible payment options or subsidies to attract and retain tenants.
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.