Location: Perry 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)
To classify ZIP code 36744, we must analyze both yield and stability factors. The yield potential is evident when comparing the Family Monthly Rent (FMR) of $920, which is the expected rental assistance payment under Section 8 for fiscal year 2024, against the market rent of $669. This indicates that properties receiving Section 8 assistance can command higher rents, suggesting a high-yield environment.
The home value in ZIP 36744 stands at $143,736, which provides a benchmark for investment costs. Given the disparity between the FMR and market rent, landlords and small-portfolio investors can expect to earn above-market rates, enhancing profitability.
On the stability axis, ZIP 36744 has 34.4% of its residents as renters, which is a moderate figure. However, the lack of data on days-on-market (DOM) suggests uncertainty in how quickly rental units can be filled. The median household income is $30,518, indicating a lower-income area where Section 8 programs are likely prevalent.
Considering these metrics, ZIP 36744 leans towards being a steady-cashflow zone. While the yield is high due to the FMR exceeding market rent, the stability factor is influenced by the moderate percentage of renters and the absence of DOM data, which could indicate either quick or slow turnover rates. The median income figure supports the notion that this is an area where many tenants rely on Section 8 vouchers, ensuring a consistent demand for rental housing.
In conclusion, the high-yield aspect is driven by the ability to charge higher rents through Section 8 assistance compared to the local market rate. The stability, while not as strong as it could be due to limited turnover data, is supported by the presence of a substantial number of renters who depend on government assistance, leading to a predictable cash flow scenario.
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.