Location: Talladega County, AL | Metro: Talladega County, AL
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 | $740 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,250 |
| 5 Bedrooms | $1,450 |
| 6 Bedrooms | $1,624 |
| 7 Bedrooms | $1,754 |
| 8 Bedrooms | $1,842 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,250 | $190,910 | 0.65% | D |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 landlord investing in ZIP code 35044 are significant and must be carefully considered. First, tenant turnover is likely to be higher due to the slight difference between the market rent of $788 and the Fair Market Rent (FMR) of $780 for fiscal year 2026 in the metropolitan area. This small discrepancy can lead to tenants seeking properties that fully match the FMR, increasing the likelihood of vacancies.
Vacancy exposure is another concern. The data shows a lack of information on the average days on market (DOM), which makes it difficult to predict how quickly a property might fill. A longer DOM can result in lost rental income, impacting the overall financial performance of the investment.
Deferred maintenance is also a risk factor. With a typical home value of $166,064 and a median income of $56,425, residents may struggle to afford necessary repairs and upkeep. This could lead to higher maintenance costs for landlords who take over properties that have been neglected.
However, these risks are offset by the high proportion of renters in the area, with 34.7% of the population being renters. High renter density typically translates into a robust demand for housing vouchers, which can stabilize occupancy rates and provide a reliable source of rental income.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP code 35044 is moderate. While there are challenges such as tenant turnover and potential maintenance issues, the high renter share provides a buffer against some of these risks.
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.