Location: Chilton County, AL | Metro: Chilton County, AL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $800 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
U.S. Census Bureau data (2024)
The ZIP code 36790 presents several challenges for landlords considering Section 8 investments. Firstly, the tenant turnover rate could be higher due to the discrepancy between the market rent and the Fair Market Rent (FMR) set at $1020 for FY 2024. This gap can lead to dissatisfaction among tenants who might prefer higher-quality accommodations outside the voucher system. Secondly, the vacancy exposure is significant because the Days on Market (DOM) data is unavailable, suggesting potential unpredictability in how quickly properties can be rented out. Additionally, the lack of data on typical home values and median incomes makes it difficult to assess the level of deferred maintenance that might exist, posing a risk for unexpected repair costs.
However, these risks must be weighed against the fact that 11.1% of the population are renters, which is a high percentage indicating strong demand for rental properties. This high renter density often translates into a robust demand for Section 8 vouchers, ensuring a steady stream of potential tenants. The presence of many renters also suggests a competitive market, which can help landlords maintain occupancy rates even if individual tenants cycle through frequently.
In conclusion, despite the potential for higher tenant turnover and vacancy exposure, the high renter share in ZIP 36790 supports a moderate risk profile for first-time Section 8 landlords. This assessment is based on the current data available and does not account for future changes in the local economy or housing market.
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.