Section 8 Fair Market Rent (FMR) for ZIP 36863 - 2027

Location: Chambers County, AL | Metro: Chambers County, AL

Investment Score for ZIP 36863

C
Monthly Rent (2BR)
$1,000
Median Price (2BR)
$106,126
1% Rule
0.94%
Annual Yield
11.31%

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$700
1 Bedroom$890
2 Bedrooms$1,000
3 Bedrooms$1,280
4 Bedrooms$1,310
5 Bedrooms$1,520
6 Bedrooms$1,702
7 Bedrooms$1,838
8 Bedrooms$1,930

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 $1,000 $106,126 0.94% C
3BR $1,280 $175,012 0.73% D
4BR $1,310 $258,015 0.51% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
11,919
Median Household Income
$51,130
Housing Units
5,072
Renter Percentage
30.7%
Occupancy Rate
83.8%
Renter Occupied
1,307

The rent math in ZIP 36863 (Lanett, AL, Chambers County, AL metro) is favorable but tight. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $900, while the current market rent, as per the Census ACS, stands slightly lower at $876. This suggests that landlords can expect a modest profit margin if they align their rents with the FMR, though they must be cautious about market conditions.

Acquisition in this area is relatively affordable. The median home value is $123,674, which is accessible for many investors. However, the lack of data on days on market (DOM) and the low percentage of homes requiring price cuts (0.1%) indicate that the housing market is stable, but it may also imply slower sales activity. Landlords should consider these factors when planning their investment timeline and budget.

Tenant demand in ZIP 36863 is solid. With a total population of 11,919, and 30.7% of residents being renters, there is a consistent pool of potential tenants. This demographic ensures a steady flow of rental applications, reducing the risk of vacancy.

Overall, ZIP 36863 presents a viable opportunity for landlords and small-portfolio investors. The rent math works with a slight edge, acquisitions are affordable within a stable market, and tenant demand is strong enough to support a healthy occupancy rate. Investors should proceed with confidence, keeping an eye on local market trends to maximize profitability.

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.