Location: Decatur, 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 | $860 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,360 |
| 4 Bedrooms | $1,750 |
| 5 Bedrooms | $2,030 |
| 6 Bedrooms | $2,274 |
| 7 Bedrooms | $2,456 |
| 8 Bedrooms | $2,579 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,060 | $160,495 | 0.66% | D |
| 3BR | $1,360 | $194,052 | 0.7% | D |
| 4BR | $1,750 | $289,939 | 0.6% | D |
| 5BR | $2,030 | $395,454 | 0.51% | F |
U.S. Census Bureau data (2024)
42.2% of residents in Decatur, AL, are renters, indicating a significant portion of the population relies on rental properties. This statistic aligns with the $950 Fair Market Rent (FMR) set for the area in fiscal year 2024, which is the benchmark used by the Housing Choice Voucher Program, commonly known as Section 8. The $1,112 market rent (ZORI) suggests that landlords can potentially charge above the FMR, capturing a premium in the local rental market. However, the $177,110 median home value highlights that property values are relatively stable, offering a solid foundation for long-term investment strategies.
The $51,429 median income in the area underscores the financial capability of tenants, making it feasible for them to participate in the Section 8 program where their income qualifies. With a 77-day Days on Market (DOM), it's evident that properties take a considerable amount of time to find tenants, which could be mitigated by targeting the Section 8 market due to its consistent demand. The low 0.2% price-cut share indicates that landlords rarely need to reduce rents to attract tenants, suggesting strong market conditions.
In summary, the $950 FMR for Section 8 in Decatur, AL, aligns well with the local market dynamics, characterized by a robust 42.2% renter share and a $1,112 ZORI. The $51,429 median income supports tenant eligibility for the program, while the 77-day DOM and 0.2% price-cut share suggest steady demand and minimal need for rent adjustments. For landlords and small-portfolio investors, the Section 8 market presents a reliable opportunity for consistent occupancy and cash flow.
Verdict: Decatur, AL, is a suitable market for Section 8 investments.
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.