Location: Chambers County, AL | Metro: Chambers County, AL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $690 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,320 |
| 5 Bedrooms | $1,531 |
| 6 Bedrooms | $1,715 |
| 7 Bedrooms | $1,852 |
| 8 Bedrooms | $1,945 |
U.S. Census Bureau data (2024)
The ZIP code 36855 encompasses a small, rural area with a total population of 1,460 residents. Only 4.9% of these residents are renters, indicating a predominantly owner-occupied community. The median household income in this area stands at $46,765, which is relatively modest compared to larger metropolitan areas. Furthermore, the median home value is $185,509, suggesting that homeownership is accessible but not without financial commitment.
Turning to the rent economics, the Fair Market Rent (FMR) for ZIP 36855 as determined by HUD for fiscal year 2026 is set at $1,100. However, the actual market rent, according to Census ACS data, is significantly lower at $530 per month. This disparity between the FMR and the market rent could present an opportunity for landlords and small-portfolio investors looking to leverage the Section 8 program. Landlords can potentially receive higher rents through Section 8 vouchers than they would from market-rate tenants, making it an attractive option for those seeking stable rental income.
The low percentage of renters in ZIP 36855 suggests that the area might be more suited for a hands-off voucher operator rather than a hands-on value-add buyer. The limited demand for rentals means that there is less pressure to actively manage properties or invest in renovations to attract tenants. For investors, this implies that maintaining properties at a basic level and participating in the Section 8 program could provide a steady, if not spectacular, return on investment.
In summary, ZIP 36855 offers a niche opportunity for Section 8 investors due to its low rental demand and the significant gap between FMR and market rent. The area's characteristics favor a passive approach to property management, making it ideal for hands-off operators seeking consistent income streams.
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.