Location: Franklin County, AL | Metro: Florence-Muscle Shoals, AL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,200 |
| 4 Bedrooms | $1,270 |
| 5 Bedrooms | $1,473 |
| 6 Bedrooms | $1,650 |
| 7 Bedrooms | $1,782 |
| 8 Bedrooms | $1,871 |
U.S. Census Bureau data (2024)
In ZIP code 35582, there are several risks to consider for first-time Section 8 landlords. Tenant turnover can be high due to the significant gap between the market rent of $535 and the Fair Market Rent (FMR) for FY 2024, which stands at $970. This discrepancy makes it challenging to attract tenants willing to pay the higher FMR rate, potentially leading to frequent changes in occupancy.
Vacancy exposure is another concern. The average number of days on the market (DOM) for rental properties in this area is not available, which suggests a lack of comprehensive data on how quickly units are filled. This uncertainty can lead to extended periods of vacancy, impacting cash flow and profitability.
Deferred maintenance is also a risk factor. With a typical home value of $159,285 and a median household income of $48,235, many property owners may struggle to keep up with necessary repairs and improvements. This can result in substandard living conditions that might attract scrutiny from housing authorities and lead to penalties or reduced payments.
However, these risks must be weighed against the substantial 34.6% renter share in the area. High renter density typically correlates with increased demand for rental vouchers, which can provide a steady stream of tenants and mitigate some of the financial uncertainties associated with vacancy and turnover. The strong presence of renters indicates a robust market for Section 8 properties, making it easier to find qualified applicants who can meet the required rent payments.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.