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 36742 stands out within the county due to its unique demographic and economic characteristics. With a population of 2,656 residents, 17.1% of whom rent their homes, the area has a median income of $31,231 and a median home value of $191,811. These figures suggest a modest living standard where homeownership is relatively affordable compared to other regions.
The housing voucher economics in ZIP 36742 are particularly noteworthy. The Fair Market Rent (FMR) for the area, set at $920 for fiscal year 2024, significantly exceeds the average market rent of $796 based on Census American Community Survey (ACS) data. This discrepancy indicates that landlords who accept Section 8 vouchers can expect higher rental incomes than those who rely solely on market rents. Given the relatively low median income and high percentage of renters, the presence of these vouchers can be crucial in maintaining a stable tenant base.
Evaluating the data signature of ZIP 36742, it appears to be a stable environment. The modest median income and median home value suggest a community that is not prone to rapid changes in economic status. Additionally, the fact that the FMR is higher than the market rent could attract more landlords to participate in the Section 8 program, further stabilizing the local rental market. For small-portfolio investors and landlords, accepting Section 8 vouchers could provide a steady stream of income while serving a critical need in the community.
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.