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 | $790 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,440 |
| 5 Bedrooms | $1,670 |
| 6 Bedrooms | $1,870 |
| 7 Bedrooms | $2,020 |
| 8 Bedrooms | $2,121 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,270 | $167,415 | 0.76% | D |
U.S. Census Bureau data (2024)
27.4% of residents in ZIP code 35565 are renters, indicating a significant portion of the population relies on rental housing. This statistic is crucial for landlords and small-portfolio investors looking to understand the demand for rental properties in the area. The Fair Market Rent (FMR) for ZIP 35565 in fiscal year 2024 is set at $890, which is the maximum amount that a landlord can charge for a unit under the Section 8 program. Comparatively, the market rent, as reported by the Census Bureau's American Community Survey, stands at $745, suggesting that landlords participating in Section 8 could see a premium over typical market rates. However, the median home value in the area is $128,739, which might influence the types of homes available for rental and the potential for property appreciation.
$45,598 is the median income for the area, a figure that plays a critical role in determining the eligibility of tenants for the Section 8 program. Landlords should consider this when setting their income requirements for prospective tenants. While the average days on market (DOM) for properties is not available, the price-cut share stands at 0.2%, indicating that property values are relatively stable and there isn't a high need for landlords to reduce their asking prices significantly to attract tenants.
In summary, ZIP 35565 offers a mix of opportunities and challenges for landlords and small-portfolio investors. With a substantial renter share and a higher FMR compared to market rent, participation in the Section 8 program can be lucrative. The median home value suggests a potentially affordable entry point for acquiring rental properties, while the median income provides insight into tenant eligibility. Given these factors, landlords in ZIP 35565 should find the Section 8 program a viable option for securing steady rental income.
Verdict: ZIP 35565 is a suitable market for Section 8 rentals, offering a balance between demand and financial stability.
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.