Location: Cullman County, AL | Metro: Decatur, AL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $730 |
| 1 Bedroom | $740 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 35019 are straightforward. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment is set at $920 per month for fiscal year 2024. This figure is specific to this ZIP code, meaning it's tailored to the local housing market conditions.
Local market rents, according to the Census ACS (American Community Survey), run slightly lower at $883 per month for a similar two-bedroom unit. This indicates that the SAFMR is above the average market rent, which can be beneficial for landlords.
A voucher payment under Section 8 is calculated based on the difference between the SAFMR and the tenant's portion of the rent. Typically, the tenant is responsible for paying 30% of their adjusted income towards rent. For example, if a tenant has an adjusted income of $1,500 per month, they would pay 30%, or $450, towards the rent. The remaining amount up to the SAFMR is covered by the housing authority.
In addition to covering the rent, Section 8 also provides utility allowances. These vary but are generally around $200-$300 per month depending on the number of bedrooms and other factors. Therefore, if we assume a utility allowance of $250, the total reimbursement from the housing authority would be $670 ($920 - $450) plus the $250 for utilities, making it $920 in total.
This means that for a two-bedroom apartment in ZIP 35019, landlords will receive the full SAFMR of $920, which exceeds the local market rent by $37. This creates a surplus for landlords who participate in the program, as they are effectively receiving more than the typical market rate for a comparable property.
To summarize, the SAFMR for a two-bedroom apartment in ZIP 35019 is $920, while the local market rent is $883. With a tenant paying $450 (based on a hypothetical income of $1,500) and a utility allowance of $250, the housing authority will cover the remaining $470 of the rent. Thus, landlords participating in Section 8 for a two-bedroom unit in this ZIP code can expect a monthly surplus of $37 over the local market rent.
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.