Location: Cullman 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 | $810 |
| 1 Bedroom | $820 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,070 | $166,483 | 0.64% | D |
| 3BR | $1,400 | $249,893 | 0.56% | F |
| 4BR | $1,640 | $321,311 | 0.51% | F |
U.S. Census Bureau data (2024)
The ZIP code 35055 in Cullman, Alabama, encompasses a neighborhood with a total population of 23,115 residents, of which 35.8% are renters. The median household income here is $58,405, indicating a middle-class community. The median home value stands at $249,162, reflecting a modest cost of living relative to other metropolitan areas.
Moving into the economic realities of renting, the Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $910. This figure contrasts sharply with the actual market rent, measured by the Zillow Observed Rental Index (ZORI), which is $1,518. This discrepancy highlights a significant opportunity for landlords who can offer properties at or near the FMR level, catering to those who might benefit from government assistance programs like Section 8.
Given these conditions, ZIP 35055 is well-suited for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the potential tenant pool supported by Section 8 vouchers ensures steady and reliable rental income. Meanwhile, hands-on value-add buyers can capitalize on the disparity between FMR and market rents, potentially increasing property values through renovations and improvements while still attracting tenants through voucher programs.
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.