Location: Perry County, AL | Metro: Dallas County, AL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $740 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,200 |
| 4 Bedrooms | $1,370 |
| 5 Bedrooms | $1,589 |
| 6 Bedrooms | $1,780 |
| 7 Bedrooms | $1,922 |
| 8 Bedrooms | $2,018 |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 36759 might have several valid concerns regarding the feasibility of renting out properties under the Section 8 program. Let's address these concerns directly using the available data.
Will Fair Market Rent (FMR) of $840 (for metro FY 2026) cover the mortgage on a $134,772 home?
The Fair Market Rent (FMR) set at $840 for ZIP 36759 does not guarantee that it will fully cover the mortgage on a $134,772 home. The FMR is intended to reflect the typical rent for a modest apartment in the area, but it does not take into account the mortgage payments which can vary widely based on interest rates, down payment, and other factors. To determine if the FMR covers the mortgage, an investor would need to calculate their specific monthly mortgage payment. However, given that the median home value in the area is lower than $134,772, securing a mortgage at a higher amount could be challenging due to potential higher interest rates or stricter lending criteria.
Is there enough renter demand at 15.2%?
The rental demand in ZIP 36759, measured by the percentage of renters at 15.2%, is relatively low compared to national averages. This figure suggests that only a small portion of the population in the area is actively seeking rental housing. However, it's important to note that this statistic alone does not provide a complete picture of the rental market. Other factors such as vacancy rates, the number of Section 8 participants, and the local economy play significant roles. A deeper analysis of these elements would give a clearer understanding of the actual demand for rental units in this ZIP code.
Will vouchers keep pace with market rents of $793?
The current market rent in ZIP 36759 is set at $793, which is below the FMR of $840. While the FMR is a guideline for voucher amounts, it does not automatically mean that vouchers will increase to match market rents. The Housing Choice Voucher Program adjusts its payments periodically, but there is no guarantee that they will rise to exactly meet the market rents. Investors should monitor the trend of both FMR and market rents over time to assess whether the gap is likely to narrow or widen. Given the current data, the voucher amounts appear sufficient to cover most market rents, but future adjustments will depend on the local housing market conditions and federal guidelines.
In conclusion, while the data provides some insights into the challenges and opportunities in ZIP 36759, it is essential for investors to conduct further research and consider additional economic indicators to make informed decisions about participating in the Section 8 program.
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.