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)
26.9% of residents in ZIP code 36786 are renters, indicating a significant portion of the population relies on rental housing. This statistic underscores the importance of understanding the local rental market dynamics for landlords and small-portfolio investors. $33,375 is the median income for this area, which is crucial for assessing the affordability of housing options for potential tenants. While the median home value is listed as N/A, suggesting limited data on homeownership values, the focus should remain on rental properties given the high renter share.
$920 is the Fair Market Rent (FMR) for ZIP 36786 as of fiscal year 2024, setting a benchmark for what is considered reasonable rent under federal housing assistance programs. However, the actual market rent, as per the Census ACS data, is $475, revealing a substantial gap between the FMR and what tenants might actually be paying. This discrepancy presents an opportunity for landlords who can offer units at or near the FMR while still attracting tenants.
The lack of data on days on market (DOM) and the percentage of price-cut shares suggests a stable market without significant fluctuations or oversupply issues. Landlords can leverage this stability to ensure steady occupancy rates and maintain consistent cash flows. Given the lower market rent compared to the FMR, there is a clear demand for affordable housing, making Section 8 vouchers an attractive option for both tenants and landlords.
Section 8 verdict: With a high renter share and a median income of $33,375, coupled with the significant gap between the FMR and market rent, ZIP 36786 is ripe for Section 8 participation, offering a reliable path to stable tenancy and income.
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.