Location: Dallas County, AL | Metro: Montgomery, AL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,330 |
| 5 Bedrooms | $1,543 |
| 6 Bedrooms | $1,728 |
| 7 Bedrooms | $1,866 |
| 8 Bedrooms | $1,959 |
U.S. Census Bureau data (2024)
In ZIP code 36785, the Section 8 program operates under specific economic guidelines that affect landlords and small-portfolio investors. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2024 is set at $920. This figure is crucial because it represents the maximum amount that the housing authority will pay towards a tenant's rent subsidy.
The local market rent for a two-bedroom unit in ZIP 36785, according to the Census ACS, is $1,132. This means that landlords can charge up to this amount for rent. However, the tenant is required to contribute a portion of their income towards the rent, which is typically 30% of their adjusted monthly income. If the tenant's income is $1,000 per month, their contribution would be $300.
Once the tenant's portion is factored into the equation, the actual reimbursement to the landlord from the Section 8 voucher is calculated. For example, if the landlord charges $1,132 and the tenant contributes $300, the housing authority would then cover the difference up to the SAFMR limit of $920. In this case, the landlord would receive $920 from the housing authority and $300 from the tenant, totaling $1,220, which exceeds the market rent by $90.
However, it's important to note that the housing authority might also provide an additional utility allowance, which varies but is generally around $150-$200 for a two-bedroom unit. This allowance does not increase the total rent but can be used by the tenant to cover utility costs.
To summarize, in ZIP 36785, the typical reimbursement gap or surplus for a two-bedroom apartment is a surplus of $90, assuming the landlord charges the market rent of $1,132. Landlords should carefully consider these figures when deciding whether to participate in the Section 8 program, as they ensure a steady stream of income while potentially exceeding the local market rent.
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.