Location: Marengo County, AL | Metro: Tuscaloosa, AL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $870 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
U.S. Census Bureau data (2024)
The ZIP code 36738 represents a significant opportunity for landlords and small-portfolio investors interested in Section 8 tenants. With a population of 747, this area has a notable 30.2% of residents who are renters. This indicates that the ZIP is indeed renter-heavy, suggesting a strong potential for deep voucher demand.
The median household income in ZIP 36738 is $34,583. The typical market rent of $775 consumes approximately 2.2% of the median monthly income when calculated. However, it's important to note that the Federal Market Rent (FMR) for FY 2024 in this ZIP is set at $920, which is higher than the current market rent. This suggests that the area may be undervalued in terms of rental pricing relative to government standards, potentially offering room for modest increases while still remaining within the reach of voucher holders.
To put the income-to-rent ratio into perspective, consider that the $775 market rent represents about 22.5% of the median monthly income. This means that even without a voucher, a substantial portion of the local population could find the typical rent affordable, but the gap between the market rent and the FMR highlights the value that Section 8 vouchers can bring to renters.
A landlord in ZIP 36738 should expect a tenant profile that heavily relies on housing assistance programs such as Section 8. Given the income levels and the high percentage of renters, these vouchers are crucial for many individuals to afford housing. Landlords will benefit from understanding the intricacies of working with voucher programs, including the application process and the financial support they provide.
In conclusion, ZIP 36738 presents itself as an area with a robust tenant pool that is likely to have a high dependency on Section 8 vouchers. The combination of a renter-heavy demographic and relatively low market rents makes it a prime location for landlords looking to attract tenants who need financial aid to secure housing.
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.