"Nightmare at Noon" (1988)?
Here is the trailer. You can see some of the infected, 'zombie' townspeople bleeding green blood.
https://www.youtube.com/watch?v=gxgC3mMahew
Strangely enough, this movie has the same plot as "Mutant" (1983), my other answer, and also features two of the same actors, Bo Hopkins and Wings Hauser!