Section 8 Fair Market Rent (FMR) for ZIP 36861 - 2027
Location: Tallapoosa County, AL | Metro: Tallapoosa County, AL
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $700 |
| 1 Bedroom | $700 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,120 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$65,577
A landlord considering ZIP code 36861 for a Section 8 investment must follow a structured decision-making process based on the financial metrics and market conditions. Here's how to approach the decision:
- Does the Fair Market Rent (FMR) of $780 (for the metro area in fiscal year 2026) cover the debt service on a property valued at $611,248?
- If yes: The FMR is sufficient to meet the debt obligations, assuming typical financing terms. This is a positive indicator for a Section 8 investment.
- If no: The FMR does not cover the debt service, making it financially unviable without additional sources of income or subsidies. Do not proceed with the purchase.
- Is the market rent of $717 (as per Census ACS data) above, at, or below the FMR?
- If above: The market rent exceeds the FMR, indicating that non-Section 8 tenants might be willing to pay more, which can be advantageous if you plan to diversify your tenant base.
- If at or below: Market rent is either equal to or lower than the FMR. This suggests that Section 8 rents will be close to or higher than what the market can bear, potentially limiting your pool of tenants to those eligible for Section 8 assistance.
- Are 11.7% of residents renters and the days on the market (DOM) sufficient to indicate demand?
- If yes: With 11.7% of the population renting, there is a steady demand for rental properties. However, the lack of data on DOM makes it difficult to assess how quickly units are typically rented out. It depends on other factors such as vacancy rates and local economic stability.
- If no: The percentage of renters is low, suggesting limited demand. Additionally, the absence of DOM data complicates the assessment of rental speed. Consider other areas with higher rental percentages and clearer market indicators.
In summary, the viability of purchasing a property in ZIP 36861 for Section 8 purposes hinges on the ability of FMR to cover debt service, the relationship between market rent and FMR, and the overall demand for rentals. Without concrete DOM data, the final decision rests on balancing the financials and assessing broader market trends.
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.