Location: Marshall County, AL | Metro: Decatur, AL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $820 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
U.S. Census Bureau data (2024)
The ZIP code 35087 is situated in a suburban neighborhood characterized by a relatively small population of 2,281 residents. Only 14.4% of these residents are renters, indicating a primarily owner-occupied area. The median household income in this ZIP is $67,043, which suggests a middle-class community where residents have stable financial conditions. The median home value stands at $223,738, reflecting a moderate cost of living and property investment environment.
Transitioning into the economic realities of renting, the Fair Market Rent (FMR) for ZIP 35087 as of the fiscal year 2024 is set at $1,150. This figure contrasts sharply with the actual market rent reported by the Census Bureau's American Community Survey (ACS), which is $863. The discrepancy between the FMR and the market rent presents an opportunity for landlords and small-portfolio investors to either capitalize on the higher voucher reimbursement rates or adjust their rental pricing strategies to align with market demands.
Given these metrics, ZIP 35087 could be suitable for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the higher FMR compared to market rent means they can receive government subsidies that exceed typical market rates, ensuring steady cash flow without the need for active property management. On the other hand, for hands-on investors looking to enhance property values, the lower market rent provides a chance to improve properties and increase rents closer to the FMR, thereby maximizing returns. However, the low percentage of renters indicates a limited pool of potential voucher tenants, which may affect the feasibility of a purely hands-off strategy. Value-add opportunities are likely to be more prevalent, given the room for rent increases and the potential for property upgrades to attract higher-paying tenants.
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.