Location: Chambers County, AL | Metro: Chambers County, AL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $640 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,180 |
| 4 Bedrooms | $1,210 |
| 5 Bedrooms | $1,404 |
| 6 Bedrooms | $1,572 |
| 7 Bedrooms | $1,698 |
| 8 Bedrooms | $1,783 |
U.S. Census Bureau data (2024)
To classify ZIP code 36862, we must analyze the yield and stability factors presented. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $900, while the actual market rent is lower at $678. This discrepancy suggests that there is room for rental price increases, potentially leading to higher yields. However, the median home value stands at $149,408, which is relatively low compared to the FMR, indicating a lower barrier to entry for property acquisition.
The percentage of renters at 27.4% is a key indicator of stability. A higher proportion of renters can mean greater demand for rental properties, but it also implies a less stable tenant base. The lack of data on days on market (DOM) makes it difficult to assess how quickly properties are rented out, but the median income of $37,719 provides insight into the financial capacity of potential tenants. This figure is below the national average, suggesting that the majority of residents might be sensitive to economic changes, which could impact their ability to pay rent consistently.
Given these figures, ZIP 36862 leans towards being a high-yield/low-stability market. The significant gap between the FMR ($900) and the current market rent ($678) indicates a potential for increasing rental income, thus enhancing yield. However, the low median income and the moderate percentage of renters imply that the market may experience fluctuations in occupancy and rent collection rates, reducing stability.
A strategy for landlords and small-portfolio investors would be to focus on properties that can generate immediate cash flow at or near the current market rate while being prepared to manage the risks associated with a less stable tenant pool. Investing in upgrades or management services to improve tenant retention could help mitigate some of the instability concerns.
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.