Location: Marengo County, AL | Metro: Choctaw County, AL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $890 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,690 |
| 5 Bedrooms | $1,960 |
| 6 Bedrooms | $2,195 |
| 7 Bedrooms | $2,371 |
| 8 Bedrooms | $2,490 |
U.S. Census Bureau data (2024)
ZIP code 36904 in Marengo County, AL, exhibits characteristics of a value pocket within its metro area. The Fair Market Rent (FMR) for a two-bedroom unit in ZIP 36904 is $880, whereas the market rent is $731. This discrepancy indicates a subsidy-driven rental market, beneficial for landlords participating in the Housing Choice Voucher (Section 8) program.
Compared to other ZIP codes in Marengo County, such as 36736, 36748, 36754, 36763, 36764, and 36782, ZIP 36904 has a lower median home value of $137,342. This figure is significantly below the county-wide averages, making it an affordable option for investors. Additionally, the 26.6% renter share in ZIP 36904 suggests a substantial portion of tenants could be eligible for Section 8 vouchers, enhancing the potential for stable rental income.
The combination of a high renter share and relatively low home values points to ZIP 36904 as a sweet spot for Section 8 investments. Landlords can leverage the difference between FMR and market rent to attract voucher holders while maintaining competitive pricing. Furthermore, the lower median home value means lower acquisition costs, which can translate into higher returns on investment when considering long-term property ownership and rental operations.
In summary, ZIP 36904 presents itself as a value pocket within Marengo County, AL, offering opportunities for landlords and small-portfolio investors to capitalize on the disparity between FMR and market rent, along with a substantial renter population likely benefiting from housing assistance programs.
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.