Location: Perry County, AL | Metro: Birmingham-Hoover, AL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
U.S. Census Bureau data (2024)
The Section 8 housing market in ZIP code 36793, located in Perry County, AL metro, presents unique opportunities for real estate investors. The HUD Fair Market Rent (FMR) for the area stands at $970 for the fiscal year 2024. However, due to the lack of recent market rent data, it's challenging to make a direct comparison. Based on the available HUD FMR, voucher tenants will generally cashflow at this rate, but the margin will be slim unless the unit is premium.
To derive the rent-to-price ratio, we use the median home value of $221,465. This ratio helps investors understand the potential rental income relative to the purchase price of a property. Assuming an average annual mortgage payment, including principal, interest, taxes, and insurance, at approximately $11,640 (based on a 4.5% interest rate and 20% down payment), the monthly cost would be around $970. This aligns closely with the HUD FMR, suggesting that the rental income could cover the mortgage payments without significant profit margins.
The dynamics between renting and buying in this market can be further analyzed by looking at the Days on Market (DOM) and the percentage of homes that have been discounted. Unfortunately, the data for these metrics is also not available, which makes it difficult to assess how quickly properties are selling and if there's a trend towards price reductions. These factors are crucial in determining whether it's more advantageous to buy and hold properties or to sell them for capital gains.
The strongest angle for investors in ZIP 36793 is likely to be stability. Given the alignment between the HUD FMR and the potential monthly mortgage payments, investors can expect steady cash flows with minimal risk. While appreciation might not be as robust as in other markets, the consistent demand for affordable housing supported by Section 8 vouchers ensures a reliable tenant base and predictable returns.
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.