Location: Perry County, AL | Metro: Dallas County, AL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,310 |
| 5 Bedrooms | $1,520 |
| 6 Bedrooms | $1,702 |
| 7 Bedrooms | $1,838 |
| 8 Bedrooms | $1,930 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 36773, located in Perry County, AL, reveals several key insights for potential landlords and small-portfolio investors.
Firstly, the rent math does not align favorably. The Fair Market Rent (FMR) for the area, set at $820 for metro FY 2026, falls below the market rent of $990 as reported by the Census ACS. This discrepancy suggests that landlords may struggle to cover costs if they rely on the FMR guidelines, as the actual market rent is higher and likely necessary to sustain profitability.
Secondly, the acquisition cost appears to be manageable. With a median home value of $151,998, purchasing properties in this ZIP code is relatively affordable compared to many other regions. However, the lack of data on days on market (DOM) and the percentage of homes sold at a price cut indicates an incomplete picture of the local real estate market dynamics. This missing information could be crucial for understanding the ease and speed of property sales, which are important factors for investors.
Lastly, the tenant demand is modest. The ZIP code has a population of 427, with only 11.3% being renters. This low renter share implies limited demand for rental properties, potentially leading to challenges in finding tenants. Given the small population, even a slight fluctuation in the number of available rentals could significantly impact occupancy rates.
In summary, while the median home value in ZIP 36773 offers a reasonable entry point for acquisition, the mismatch between FMR and market rent, combined with a low renter share, points to potential difficulties in achieving a profitable rental operation. Investors should proceed with caution and consider these factors carefully before committing to property purchases in this area.
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.