Location: Choctaw County, AL | Metro: Choctaw County, AL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $810 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP 36915 focuses on the disparity between the HUD Fair Market Rent (FMR) and the actual market rent. As of fiscal year 2026, the FMR for a two-bedroom apartment in ZIP 36915 is set at $820 per month. However, the median monthly rent for a two-bedroom apartment in the same area is $670, indicating that the FMR is $150 higher than the market rent.
This represents a 22.4% premium for landlords who accept Section 8 vouchers. The higher FMR means that voucher tenants can potentially pay more than the open-market rate, making this a yield play for landlords. Given the context of 9.4% of residents being renters, the median home value of $73,800, and a median income of $37,105, it becomes evident that accepting Section 8 vouchers can be a lucrative strategy for landlords.
The median home value in ZIP 36915 is significantly lower than the national average, which stands at $338,100. This suggests that the housing market in this area is more affordable, but also indicates that the local economy might be less robust compared to the national average. With the median income being $37,105, it is crucial for landlords to understand the financial landscape of their tenants and the potential benefits of participating in the Section 8 program.
In conclusion, the gap between the FMR and the market rent in ZIP 36915 presents an opportunity for landlords to maximize their yields by accepting Section 8 vouchers. The higher FMR ensures that voucher tenants can pay more than the prevailing market rent, thus providing a financial advantage for landlords in this area.
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.