Section 8 Fair Market Rent (FMR) for ZIP 35215 - 2027

Investment Score for ZIP 35215

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	$1,200
1 Bedroom	$1,290
2 Bedrooms	$1,400
3 Bedrooms	$1,760
4 Bedrooms	$1,980
5 Bedrooms	$2,297
6 Bedrooms	$2,573
7 Bedrooms	$2,779
8 Bedrooms	$2,918

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
2BR	$1,400	$113,585	1.23%	A
3BR	$1,760	$149,223	1.18%	B
4BR	$1,980	$192,882	1.03%	B
5BR	$2,297	$228,393	1.01%	B

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 35215 (Center Point, AL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 35215 is set by HUD for 2026. For a two-bedroom unit, the FMR is $1260 per month. This represents 28.6% of the median household income in Center Point, which is $52,793. The FMRs for other bedroom types are as follows: $1020 for 0BR, $1150 for 1BR, $1580 for 3BR, and $1790 for 4BR units. To understand how these FMRs compare to actual rents, we need to consider the price-to-FMR ratio. According to the data provided, the Zillow median price for a two-bedroom home in Center Point is $111,458. This translates to a price-to-FMR ratio of 7.4x, indicating that the median home price is significantly higher than the monthly rent FMR. This high ratio suggests that actual rental prices in the area might be above the FMR levels, especially considering the median home price. However, it also implies that voucher holders face significant constraints when trying to find affordable housing. They must adhere to the FMR limits, which can be lower than what landlords might charge in a competitive market. #### Affordability & Renter Profile In Center Point, 43.4% of the population are renters, indicating a substantial demand for rental properties. The occupancy rate of 85.7% suggests that there is a relatively tight market, with most available units being occupied. Given the median household income of $52,793, many renters likely rely on assistance programs like Section 8 vouchers to afford housing. The affordability of housing is a critical issue for residents, particularly those who are low-income earners. With the FMR for a two-bedroom unit being $1260, which is only 28.6% of the median income, it is clear that housing costs are manageable for those earning the median income. However, for the majority of renters who earn below this level, finding affordable housing could be challenging. Given the high percentage of renters and the tight occupancy rate, the market appears to be well-supplied but competitive. Landlords have some leverage due to the high demand, but the presence of Section 8 vouchers helps ensure that a portion of the rental stock remains affordable. #### Investor Angle From an investor’s perspective, the key question is whether the ZIP code offers cash-flow positive opportunities at the FMR levels. Based on the provided data, the FMR for a two-bedroom unit is $1260. To determine if this is cash-flow positive, we need to consider the typical operating expenses and mortgage payments associated with rental properties in the area. Assuming an average operating expense of 50% of the rent (which includes maintenance, utilities, property taxes, insurance, and other costs), the net income would be approximately $630 per month for a two-bedroom unit. This is a reasonable starting point, but investors should also factor in potential vacancy rates and the cost of acquiring and maintaining the property. The investment grade of a property in this ZIP code depends on several factors, including the location, condition, and size of the property. Given the high demand for rentals and the relatively low FMR compared to the median income, properties that fall within the FMR range are likely to be attractive to both voucher holders and non-voucher tenants. This dual appeal can make properties in Center Point financially viable for investors. #### Specific Actionable Insights 1. **Focus on Two-Bedroom Units**: Since the FMR for a two-bedroom unit is $1260, which is 28.6% of the median income, this size of unit is most likely to attract both voucher holders and non-voucher tenants. Investors should prioritize properties that can be rented out at this rate to maximize their chances of occupancy and cash flow. 2. **Consider Lower-Income Neighborhoods**: Within Center Point, neighborhoods with a higher concentration of low-income residents might offer better opportunities for Section 8 voucher holders. These areas are likely to have more affordable housing options, making it easier for voucher holders to find suitable homes. 3. **Monitor Local Rental Prices**: While the FMR provides a benchmark, actual rental prices can vary. Investors should keep track of local rental prices to ensure they remain competitive. If actual rental prices exceed FMR levels, landlords might struggle to fill units with voucher holders unless they can negotiate higher subsidies. #### Bottom Line For Section 8-focused investors, Center Point, AL (ZIP 35215) presents a mixed picture. The high demand for rentals and the relatively low FMR suggest that there are opportunities for cash-flow positive investments, particularly in two-bedroom units. However, the tight market and high price-to-FMR ratio indicate that competition for tenants can be fierce, and investors must carefully manage their properties to stay within FMR guidelines. **Recommendation**: **Hold**. Investors should maintain their current positions in Center Point, given the strong demand for rentals and the potential for steady cash flow. However, new investors should proceed with caution, ensuring they focus on properties that align with FMR guidelines and can attract both voucher and non-voucher tenants.

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.