Location: Tallapoosa County, AL | Metro: Tallapoosa County, AL
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $950 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $2,000 |
| 5 Bedrooms | $2,320 |
| 6 Bedrooms | $2,598 |
| 7 Bedrooms | $2,806 |
| 8 Bedrooms | $2,946 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,250 | $414,332 | 0.3% | F |
| 3BR | $1,530 | $572,473 | 0.27% | F |
| 4BR | $2,000 | $954,264 | 0.21% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 36853, Dadeville, AL, reveals a mixed market scenario that offers both opportunities and challenges for landlords and small-portfolio investors.
On the yield axis, Dadeville presents an attractive opportunity. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $990, while the market rent stands at $1,112. This indicates that rental properties in this area can potentially command a premium over the FMR, enhancing the yield for investors. Additionally, the median home value of $519,982 suggests that the area has a relatively high property value, which can be beneficial for those looking to invest in appreciation potential alongside rental income.
However, when it comes to stability, the picture is less clear. With only 18.7% of the population being renters, there is a smaller pool of potential tenants compared to areas with higher percentages. This lower rate of renters could indicate a less stable demand for rental properties. Moreover, the absence of data regarding the average days on market (DOM) for rentals means that we cannot assess how quickly properties might be leased. Lastly, the median household income of $73,594 provides some insight into the financial capacity of residents, but without knowing the unemployment rate or other economic indicators, it's difficult to gauge overall stability.
In summary, ZIP 36853 leans towards a high-yield market due to the premium rents and high property values. However, the low percentage of renters and lack of comprehensive data on leasing trends suggest a lower stability. Therefore, this area is best suited for investors who are willing to accept some risk for the potential of higher returns, rather than those seeking a steady cash flow with minimal fluctuations. It does not fully fit the profile of a flip-style market, as there is insufficient data on property turnover rates, but it does offer a balance between higher yields and some inherent instability.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.