Location: Talladega County, AL | Metro: Coosa 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 | $950 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,610 |
| 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 |
|---|---|---|---|---|
| 3BR | $1,610 | $238,203 | 0.68% | D |
U.S. Census Bureau data (2024)
13.5% of residents in ZIP code 35151 are renters, indicating a moderate demand for rental properties. The $820 Fair Market Rent (FMR) for the metro area in fiscal year 2026 shows the benchmark for rental costs supported by government programs, such as Section 8. Meanwhile, the actual market rent stands at $889, based on Census ACS data, suggesting that properties slightly above the FMR can still attract tenants. With a median home value of $201,094, the real estate market in this area is relatively stable and affordable. The median income of $68,239 provides insight into the financial capabilities of the local population, which is crucial for assessing the viability of rental investments. However, the lack of data on days on market (DOM) and the 0.1% price-cut share indicate that there might be limited volatility in property pricing, meaning that once a property is listed at an appropriate price, it likely won't need significant adjustments to sell or rent.
The absence of recent days on market data could imply that the housing market is moving briskly, without long delays in transactions. This stability and the slight premium of market rents over the FMR suggest that landlords and small-portfolio investors can achieve competitive returns while still participating in government-assisted housing programs. The $820 FMR is a solid floor for rental rates, ensuring that those who qualify for assistance can afford to live in the area, while the higher market rent of $889 offers a margin for profit.
Given these figures, landlords should consider setting their rents close to the market rate of $889 to maximize profitability, while still being mindful of the $820 FMR for potential Section 8 tenants. The median income of $68,239 supports the ability of many residents to pay the market rent, reducing the risk of vacancy. Additionally, the low price-cut share of 0.1% suggests that landlords are unlikely to face significant pressure to reduce rents to attract tenants.
In conclusion, ZIP 35151 presents a balanced opportunity for landlords and small-portfolio investors, with a fair market rent of $820 and market rents at $889, a median home value of $201,094, and a median income of $68,239. The market is steady, with limited evidence of rapid price fluctuations or prolonged vacancies. For those interested in Section 8 participation, the $820 FMR provides a clear guideline for setting rents that align with government support levels.
Section 8 Verdict: Suitable for landlords looking for a stable investment with moderate demand for subsidized housing.
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.