Location: Winston County, AL | Metro: Cullman 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 | $790 |
| 1 Bedroom | $800 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,360 | $568,601 | 0.24% | F |
| 4BR | $1,580 | $879,999 | 0.18% | F |
U.S. Census Bureau data (2024)
The analysis for ZIP 35053 reveals a significant gap between the Fair Market Rent (FMR) set at $930 for the fiscal year 2026 and the actual market rent of $848, as per the latest Census ACS data. This discrepancy amounts to $82, or approximately 9.7%, where the FMR exceeds the market rate.
This situation makes ZIP 35053 a prime yield play for landlords and small-portfolio investors who accept Section 8 housing vouchers. The higher FMR ensures that voucher holders can afford rents up to $930, which is above the current market rate. This means landlords can charge closer to the FMR without losing tenants, thereby increasing their rental income.
In the context of ZIP 35053, only 3.9% of residents are renters, indicating a relatively low demand for rental properties. Despite this, the median home value stands at $520,493, suggesting a strong local economy. Coupled with a median income of $56,167, landlords can leverage these economic conditions to attract voucher tenants willing to pay the higher FMR rates.
Accepting Section 8 vouchers in ZIP 35053 thus becomes a strategic move for landlords. They can secure stable, government-backed rental income while potentially charging more than the current market rent. This scenario benefits both the landlord, who sees an increased yield, and the tenant, who receives affordable housing options.
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.