Location: Marshall County, AL | Metro: Decatur, AL MSA
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 | $810 |
| 2 Bedrooms | $1,050 |
| 3 Bedrooms | $1,430 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,430 | $281,842 | 0.51% | F |
| 4BR | $1,510 | $461,524 | 0.33% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 35175 stands at $74,600, which places significant constraints on the financial capacity of households to pay rent. At the market rate of $856 per month, as reported by the Census ACS, it becomes evident that the average household faces challenges in affording housing without assistance. This market rate represents nearly 12% of the median annual income, indicating a strain on disposable income.
In comparison, the Fair Market Rent (FMR) set at $920 for the fiscal year 2024 reflects a slightly higher benchmark for rental costs, but still remains within reach for some households. However, the difference between the market rate and the FMR suggests that landlords accepting Section 8 vouchers might find themselves in a position to offer more competitive rates, potentially attracting a broader tenant pool.
Given that only 13.6% of the 4,860 population are renters, the competition among landlords is likely to be fierce. The limited number of renters means that properties must be priced attractively to draw interest. The affordability gap, where the median income is lower than both the market rate and FMR, indicates that many potential tenants would require some form of financial aid to cover their rent.
Landlords considering their strategy should note that while cash-paying tenants might offer immediate financial stability, they are fewer in number. Accepting Section 8 vouchers, despite the slightly lower payment of $920 compared to the $856 market rate, could be a viable approach to ensure consistent tenancy and maintain occupancy levels.
The takeaway for landlords is clear: in ZIP 35175, where financial resources are strained, offering units that accept Section 8 vouchers could provide a strategic advantage over those who do not. It ensures a steady stream of tenants and aligns with the economic realities faced by the majority of the renting population.
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.