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)
The market analysis for Section 8 investors in ZIP code 36765, located in Perry County, AL metro, reveals a competitive rental landscape. The Fair Market Rent (FMR) as per HUD for this area in fiscal year 2024 is set at $1110. However, the current market rent data is not available, making it challenging to directly compare the two figures. Based on the HUD FMR alone, landlords can expect that voucher tenants will generally cashflow at the FMR rate, though the exact margin depends on the specific unit's operating costs.
To derive the rent-to-price ratio, we use the median home value of $144,043. This ratio provides insight into the local housing market's affordability and the potential demand for rentals. Given the FMR of $1110, the annual rent would be approximately $13,320. Dividing the annual rent by the median home value yields a rent-to-price ratio of about 9.25%, suggesting that rental properties could be relatively attractive compared to purchasing homes in the area.
Unfortunately, the day median Days on Market (DOM) and the percentage of listings that have had their prices cut are also not available. These metrics typically help gauge the health of the housing market and the balance between renting and buying. Without this information, it's difficult to provide a comprehensive view of how quickly properties sell and at what price adjustments, but the existing data points towards a stable rental market.
The strongest investor angle in ZIP 36765 is likely cashflow, given the established FMR and the lower median home value, which indicates that purchasing a home might not be as financially viable as renting for many individuals. This makes rental properties, especially those that can maintain efficiency and keep costs low, an attractive investment opportunity. Landlords should focus on maintaining quality units to ensure they remain competitive and desirable among voucher holders.
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.