Location: Tallapoosa County, AL | Metro: Auburn-Opelika, AL HUD Metro FMR Area
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 | $770 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,350 | $378,579 | 0.36% | F |
| 4BR | $1,530 | $487,381 | 0.31% | F |
| 5BR | $1,775 | $555,791 | 0.32% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis for ZIP code 36879 centers around the significant disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for the area, set at $1010 per month for fiscal year 2024, stands notably higher than the reported market rent of $764 per month according to the Census Bureau's American Community Survey (ACS). This creates a gap of $246 per month, or approximately 32%, in favor of landlords participating in the Section 8 program.
This gap makes voucher tenants a compelling yield play for landlords. With only 9.3% of residents renting, the demand for rental properties is relatively low, which means landlords can capitalize on the higher FMR rates without fear of vacancy. The median home value in the area is $449,815, indicating that homeownership is the predominant trend among residents, further reinforcing the limited competition for rental units.
The median income of $93,029 suggests that while residents have adequate financial stability, they may still prefer the security and affordability of rental housing supported by vouchers. Given these conditions, landlords can expect a steady stream of tenants who are financially backed by the government to meet the higher FMR rates. This scenario allows landlords to achieve higher monthly rents compared to the open-market rates, thereby increasing their overall yield on investment.
However, it's important to note that accepting Section 8 tenants comes with its own set of costs and considerations. Landlords must adhere to strict guidelines and inspections, which can be time-consuming and costly. Additionally, there might be delays in receiving rent payments if the housing authority experiences administrative issues. Despite these challenges, the financial benefits of the higher FMR rates make it an attractive option for landlords and small-portfolio investors looking to maximize returns in ZIP code 36879.
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.