Location: Marengo County, AL | Metro: Marengo County, AL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $890 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,010 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP 36763, located in Myrtlewood, Alabama, centers around the disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for the metro area in fiscal year 2026 is set at $850. However, the market rent is not available, which suggests that the area may have limited rental activity or data.
In the absence of market rent data, we can still analyze the situation based on the FMR. With an FMR of $850, any landlord accepting Section 8 vouchers in this ZIP code would be renting at or below this rate. Given the median household income of $89,000, it indicates that the residents here can afford higher rents, suggesting that the market rent is likely above the FMR.
If the market rent were to be determined and found to be higher than the FMR, landlords who accept Section 8 vouchers would be effectively renting below the open-market rates. This could result in a lower yield on investment properties compared to what they might achieve in a competitive rental market. However, the stability provided by government-backed vouchers can offset some of these risks, ensuring consistent rental income.
Moreover, the low percentage of renters (0.0%) implies that most residents own their homes. This further supports the hypothesis that the market rent exceeds the FMR, as homeownership is often higher in areas where rental prices are less competitive.
While the median home value is listed as $0, this likely reflects the lack of sufficient data points to calculate an accurate figure. Nevertheless, the median income of $89,000 provides a strong indication of the economic capacity of the residents in this ZIP code.
To summarize, the gap between the FMR and the potential market rent in ZIP 36763 suggests that landlords accepting Section 8 vouchers should be prepared for a lower yield compared to the open-market rates. However, the reliability of the government subsidy can provide a stable source of income, making it a strategic choice for certain investors.
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.