Section 8 Fair Market Rent (FMR) for ZIP 36830 - 2027

Investment Score for ZIP 36830

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,010
1 Bedroom	$1,320
2 Bedrooms	$1,450
3 Bedrooms	$1,760
4 Bedrooms	$2,040
5 Bedrooms	$2,366
6 Bedrooms	$2,650
7 Bedrooms	$2,862
8 Bedrooms	$3,005

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,450	$311,832	0.46%	F
3BR	$1,760	$376,020	0.47%	F
4BR	$2,040	$510,176	0.4%	F
5BR	$2,366	$708,771	0.33%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Market Analysis for ZIP Code 36830 (Auburn, AL) 1. **Section 8 Voucher Dynamics** The Fair Market Rent (FMR) for ZIP code 36830 in Auburn, AL, is set by HUD for 2026. The FMR for a two-bedroom unit is $1380, which represents 23.6% of the median household income of $70,188. This suggests that the FMR is relatively affordable compared to the local income levels. However, the actual rent prices can be significantly higher. According to Zillow, the median price for a two-bedroom home is $303,629, which translates to a monthly mortgage payment of approximately $1631 based on a 4.5% interest rate over a 30-year term. This means that landlords who rely on Section 8 vouchers would need to charge close to the FMR to remain competitive, but the actual rental market could support higher rents. Constraints for voucher holders include the fact that they are limited to paying no more than 40% of their adjusted income towards rent. In Auburn, this could mean that many voucher holders might struggle to find suitable housing if landlords are charging above the FMR. Additionally, the voucher program has strict guidelines regarding unit size and location, which can further limit options for tenants. 2. **Affordability & Renter Profile** With a population of 49,292 and a renter percentage of 43.6%, Auburn has a significant number of renters. The occupancy rate of 86.6% indicates that the market is moderately tight, with most units occupied. The median household income of $70,188 suggests that the area has a mix of middle-income and some lower-income residents. Given that 43.6% of the population are renters, it is likely that there is a diverse range of tenant profiles, including students, young professionals, and families. The high price-to-FMR ratio of 18.3x for a two-bedroom unit highlights the disparity between the cost of owning a property and the rent that can be charged under the FMR guidelines. This makes it challenging for voucher holders to find affordable housing, as the actual rental market supports much higher rates. For example, the Zillow median price for a two-bedroom home implies a monthly mortgage payment of about $1631, which is well above the FMR of $1380. 3. **Investor Angle** From an investor perspective, the ZIP code 36830 appears to offer potential for cash flow, but it depends on the specific property and its location. If an investor can acquire a property at or below the FMR, they could potentially achieve positive cash flow. However, given the high price-to-FMR ratio, it is likely that many properties will be priced above what the FMR allows, leading to negative cash flow scenarios. The investment grade for this ZIP code would be considered moderate due to the tight rental market and the high cost of entry. Investors should carefully consider the local rental dynamics and the potential for finding tenants who can afford the higher rents outside of the FMR. 4. **Specific Actionable Insights** - **Focus on Lower-Rent Units**: Since the FMR for a two-bedroom unit is $1380, investors should focus on acquiring properties that can be rented out at or near this rate. This will ensure that they can attract Section 8 voucher holders and maintain positive cash flow. - **Consider Location and Property Type**: Given the high price-to-FMR ratio, investors should look for properties in areas where the actual rental prices are closer to the FMR. Additionally, properties that cater to students or young professionals might have better chances of attracting tenants willing to pay higher rents. - **Explore Alternative Financing Options**: With the high median home prices, traditional financing might not be feasible. Investors should explore alternative financing methods such as hard money loans, private lenders, or creative financing strategies to acquire properties at a more manageable cost. 5. **Bottom Line** Based on the provided data, the recommendation for Section 8-focused investors in ZIP code 36830 is to **Hold**. While the area offers opportunities for cash flow, the high price-to-FMR ratio and tight rental market make it challenging to find properties that can be rented out at the FMR without significant financial strain. Investors should proceed cautiously and focus on properties that align closely with the FMR guidelines while also considering alternative financing options to mitigate costs. --- This analysis provides a comprehensive overview of the rental market in Auburn, AL, focusing specifically on ZIP code 36830. It highlights the challenges and opportunities for Section 8 voucher holders and investors alike, emphasizing the importance of strategic decision-making in this particular market.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.