Section 8 Fair Market Rent (FMR) for ZIP 36754 - 2027
Location: Marengo County, AL | Metro: Marengo County, AL
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $870 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$39,583
To determine if you should invest in ZIP code 36754 for Section 8 properties, follow this decision tree:
- Does the Fair Market Rent (FMR) of $890 for the metro area in fiscal year 2026 cover the debt service on a property?
- If YES, proceed to the next question.
- If NO, purchasing a Section 8 property in this ZIP code is financially unviable due to insufficient rental income to meet mortgage obligations.
- Is the market rent above, at, or below the FMR of $890?
- If the market rent is Above $890, consider the potential for higher non-Section 8 rents. This can indicate a strong local economy or high demand, but also means fewer tenants may qualify for Section 8.
- If the market rent is At $890, it aligns perfectly with the FMR, making it ideal for Section 8 tenants without risking financial viability.
- If the market rent is Below $890, it suggests that Section 8 rates may be competitive, attracting more tenants. However, ensure that the lower market rate does not reflect broader economic issues.
- Are 12.5% of the residents renters and is the Days on Market (DOM) sufficient to meet demand?
- If YES, there is enough demand to support Section 8 investments. A DOM of N/A days indicates that properties are rented quickly, suggesting strong tenant interest.
- If NO, the low percentage of renters or high DOM might mean that finding tenants is challenging, reducing the attractiveness of Section 8 properties in this ZIP code.
The decision to purchase a Section 8 property in ZIP 36754 hinges on these factors. If the FMR of $890 covers debt service and aligns with or exceeds market rents, and if there is adequate demand indicated by a reasonable percentage of renters and DOM, then the answer is Yes. Otherwise, it depends on how you balance the risks and rewards, or the answer is No.
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.