Location: Montgomery, AL | Metro: Montgomery, AL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $820 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 36752, located in Montgomery, AL MSA, reveals that the HUD Fair Market Rent (FMR) of $930 for FY 2024 does not align with the current market rents, which are currently unavailable. This suggests that voucher tenants will likely cashflow marginally, if at all, without premium units. The median home value in this area is $179,406, leading to a rent-to-price ratio that indicates a property's potential profitability when rented out.
To derive the rent-to-price ratio, we use the median home value and the annualized FMR. Assuming an average mortgage rate and property taxes, the monthly cost to own can be compared against the FMR. For instance, if the monthly cost to own is higher than $930, then landlords might face challenges in making a profit unless they have units that command higher rents due to their condition or location. However, with the lack of current market rent data, it is difficult to provide a precise comparison.
The days on market (DOM) and price cut share percentages, both currently unavailable, would provide insight into how quickly properties sell and at what discount, which can affect the buy-versus-rent decision. In general, a lower DOM and a smaller price cut share indicate a strong seller's market, which could favor rental investments over buying properties for personal use.
The strongest investor angle in ZIP 36752 appears to be stability. Given the fixed nature of Section 8 vouchers, which cover a substantial portion of rent, and the consistent demand for affordable housing, landlords can expect steady cash flow and minimal vacancy rates. This makes the area attractive for those seeking reliable returns rather than high appreciation or significant monthly profits.
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.