Section 8 Fair Market Rent (FMR) for ZIP 35083 - 2027

Location: Cullman County, AL | Metro: Cullman County, AL

Investment Score for ZIP 35083

N/A

Monthly Rent (2BR)

$1,070

Median Price (2BR)

$N/A

1% Rule

Annual Yield

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

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

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$1,400	$228,364	0.61%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

4,692

Median Household Income

$55,335

Housing Units

1,673

Renter Percentage

26.0%

Occupancy Rate

89.2%

Renter Occupied

388

The ZIP code 35083, located in Alabama, represents a modest-sized community that offers both rental and homeownership opportunities. The area is characterized by a mix of residential properties, with a significant portion dedicated to rental units. This analysis will delve into key metrics such as Fair Market Rent (FMR), market rent, median home values, the percentage of renters, and median household income to provide insights for landlords and small-portfolio investors.

Fair Market Rent (FMR) for the area stands at $870 for fiscal year 2026, indicating the federal guideline for affordable housing in the region.
The average market rent is $1,058, which is derived from the latest Census American Community Survey (ACS) data, reflecting the actual rents charged in the local market.
The median home value in ZIP 35083 is $238,353, offering a benchmark for property values and potential investment costs.
Renters make up 26.0% of the housing market, suggesting a moderate demand for rental properties.
The median income in the area is $55,335, providing context on the financial capacity of residents to afford housing.

In summary, ZIP 35083 presents a balanced market for both rental and homeownership investments. With the FMR at $870 and market rent averaging $1,058, there is a clear opportunity for landlords to charge slightly above the federal guidelines while remaining competitive. The median home value of $238,353 suggests that property purchases are within reach for many investors. Given that 26.0% of the population are renters, the demand for rental properties is stable but not overwhelming. Additionally, the median income figure supports the viability of these rent levels, ensuring a steady stream of potential tenants who can meet the financial requirements of renting. For small-portfolio investors, this ZIP code offers a practical entry point into the real estate market with reasonable risks and returns.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.