Location: Winston 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 | $700 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,210 |
| 4 Bedrooms | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,210 | $258,343 | 0.47% | F |
U.S. Census Bureau data (2024)
The ZIP code 35179, located in Winston County, Alabama, presents a unique opportunity for inclusion within a Section 8 portfolio strategy, particularly as an appreciation play. The financial metrics provided highlight several key factors that support this categorization.
To begin, the Fair Market Rent (FMR) for ZIP 35179 in fiscal year 2024 is set at $970, while the current market rent stands at $768. This indicates a positive spread of $202 per unit, meaning that properties within this ZIP can be rented out under Section 8 at a rate above the local market average. This is beneficial for cash flow, but it's not the primary reason why ZIP 35179 should be considered as an appreciation play rather than a cash-flow anchor.
The median home value in ZIP 35179 is $249,074, which suggests a relatively affordable housing market. However, the low price-cut share of 0.1% and the fact that the days on market (DOM) is not applicable (N/A) indicate a strong demand for housing in this area. When there is high demand and limited supply, property values tend to appreciate over time. Thus, investing in ZIP 35179 aligns well with an appreciation play strategy, where the focus is on the long-term growth of asset values rather than immediate rental income.
The renter share of 11.4% and the median income of $72,956 further support the appreciation play thesis. While the renter share is modest, the median income figure shows that residents have the potential to purchase homes if market conditions improve. As the economy strengthens and more residents move towards homeownership, the demand for residential properties will likely increase, leading to higher property values.
In conclusion, ZIP 35179 offers a strategic fit for an appreciation play within a Section 8 portfolio. Although it provides a positive cash flow due to the $202 spread between FMR and market rent, the primary appeal lies in the potential for property value appreciation driven by high demand and steady income levels among residents. Landlords and small-portfolio investors should consider this ZIP as part of their investment strategy focused on capital appreciation.
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.