Location: Walker County, AL | Metro: Walker County, AL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,370 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 35501, located in the HUD Metro FMR Area of Walker County, AL, reveals key insights into its viability for Section 8 real-estate investments.
The rent math does work favorably. The Fair Market Rent (FMR) for the area, set at $920 for fiscal year 2026, exceeds the current market rent, known as the Zillow Observed Rental Index (ZORI), which stands at $863. This indicates that landlords can potentially charge rents above the market average, aligning with government-subsidized rates.
Acquisition is relatively affordable given the median home value of $128,053. Although there's no data available on the number of days on market (DOM), the low percentage of homes needing a price cut—just 0.3%—suggests that homes are selling close to their listed prices, indicating a stable local real estate market.
Tenant demand is robust. With a population of 9,927 and a significant 34.5% renter share, there are approximately 3,420 potential renters in the area. This substantial rental base supports the likelihood of finding tenants who qualify for Section 8 assistance.
Verdict: ZIP code 35501 presents a favorable environment for Section 8 real-estate investments. The favorable rent math, affordable acquisition costs, and strong tenant demand make it an attractive option for landlords and small-portfolio investors looking to capitalize on the growing need for subsidized housing. The discrepancy between the FMR and market rent offers a margin for profit, while the stable real estate market and high renter share ensure a steady stream of potential tenants. Investing here could yield consistent returns and contribute to addressing the local housing needs effectively.
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.