Location: Greene County, AL | Metro: Greene County, AL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $780 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,360 |
| 5 Bedrooms | $1,578 |
| 6 Bedrooms | $1,767 |
| 7 Bedrooms | $1,908 |
| 8 Bedrooms | $2,003 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 36740 operate based on specific financial parameters that landlords need to understand. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) is set at $930 per month for the fiscal year 2024. This SAFMR figure is crucial because it is the maximum amount that the Section 8 program will pay towards rent for a unit of this size in this specific ZIP code.
In contrast, the local market rent for a two-bedroom apartment in ZIP 36740 is significantly lower, running at an average of $525 according to the Census ACS data. This difference highlights the potential financial benefits for landlords who participate in the Section 8 program, as they can receive a higher rate than the typical market rent.
A Section 8 voucher works by covering the majority of the rent, but tenants are also required to contribute a portion of their income towards the rent. Specifically, the tenant must pay 30% of their adjusted monthly income toward rent. If the tenant's portion plus any applicable utility allowances does not meet the SAFMR of $930, the government will make up the difference.
To illustrate, if a tenant has an adjusted monthly income of $1,000, they would be expected to pay 30%, which is $300, towards rent. Assuming there is a utility allowance of $100, the total contribution from the tenant and the utility allowance would be $400. Therefore, the Section 8 program would cover the remaining balance, paying out $530 to reach the SAFMR of $930.
This reimbursement mechanism ensures that landlords receive the SAFMR rate, even when the tenant's contribution is less. However, it is important to note that the SAFMR is the ceiling; the actual rent charged cannot exceed this amount.
Given these specifics, landlords in ZIP 36740 can expect a surplus when comparing the SAFMR of $930 to the local market rent of $525. This means that participating in the Section 8 program can result in receiving a higher rent payment than the typical market rate, providing a financial advantage to those who choose to accept vouchers.
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.