Location: Wilcox County, AL | Metro: Wilcox County, AL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $760 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 36766 presents a unique challenge due to limited data points. For the purposes of this analysis, we will focus on the two-bedroom Fair Market Rent (FMR) figure for fiscal year 2026, which is set at $900 annually in the metropolitan area.
To derive the rough cap-rate picture, we must first understand that the cap rate is calculated as the net operating income (NOI) divided by the property's value. In this case, we will use the annualized two-bedroom FMR to represent the potential rental income and compare it to the median home value, which is currently not available. We will also consider the market rent, which is also not available.
In the scenario where the median home value is known, the implied gross yield can be calculated by dividing the annual rental income ($900) by the median home value. However, without the median home value, we cannot provide a specific gross-yield percentage. This calculation would give landlords and investors an idea of the potential return on investment based on the Section 8 rental rates.
Regarding the market rent scenario, the lack of specific figures makes it impossible to calculate an implied gross-yield. The market rent should ideally be higher than the Section 8 FMR, reflecting the true demand and pricing power in the local rental market. But, without these figures, any estimation would be speculative.
The analysis is further complicated by the fact that the renter density in ZIP 36766 is 0.0%, suggesting a very low population of renters relative to homeowners. Additionally, the days on market (DOM) figure is not available, which typically indicates how quickly properties are rented out in the area. These factors point towards a challenging environment for landlords seeking to participate in the Section 8 program, as the low renter density suggests a smaller pool of potential tenants.
In conclusion, while the Section 8 FMR provides a clear rental income figure, the lack of median home values and market rents means that the gross-yield comparison remains incomplete. Landlords and investors should proceed with caution, considering the low renter density and the need for additional data to make informed decisions about the potential profitability of Section 8 properties in ZIP 36766.
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.