Location: Walker County, AL | Metro: Walker County, AL HUD Metro FMR Area
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 | $690 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,330 | $252,958 | 0.53% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 35504 in metro FY 2026 is set at $870. This figure represents the payment standard for Section 8 vouchers, meaning that tenants with vouchers will pay up to this amount. However, it's important to note that the FMR does not dictate the rent you can charge; it merely sets an upper limit on what voucher holders can contribute.
To put this into perspective, the average rent in ZIP 35504, based on Census American Community Survey data, is $813. This suggests that the FMR is slightly above the local average, which could be beneficial for landlords looking to ensure stable income without undercharging.
The demand for rental properties in this area is robust, with 25.1% of residents being renters. This indicates a significant portion of the population relies on rentals, making it a viable market for Section 8 properties. Additionally, the median home value in ZIP 35504 is approximately $216,464, which gives insight into the potential acquisition cost for a property suitable for Section 8 tenants.
Before committing to a Section 8 rental property, one critical step is to verify that the property meets all HUD (Department of Housing and Urban Development) standards for health and safety. This includes ensuring compliance with various inspection criteria to avoid any issues that could delay or prevent tenancy.
In summary, the $870 FMR provides a benchmark for what you can expect as a maximum contribution from voucher holders, while the local average rent of $813 shows that the FMR is competitive. With a 25.1% renter share, there is a solid demand for rental properties in this area, and the median home value of $216,464 gives a realistic estimate of the purchase price for a property. Ensuring your property meets HUD standards is essential for a smooth transition into Section 8 rental management.
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.