Location: Huntsville, AL | Metro: Huntsville, 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 | $930 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,900 |
| 5 Bedrooms | $2,204 |
| 6 Bedrooms | $2,468 |
| 7 Bedrooms | $2,665 |
| 8 Bedrooms | $2,798 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,180 | $195,953 | 0.6% | D |
| 3BR | $1,530 | $262,350 | 0.58% | F |
| 4BR | $1,900 | $355,283 | 0.53% | F |
U.S. Census Bureau data (2024)
The ZIP code 35611 in Athens, AL, is decidedly renter-heavy, with 40.4% of the population renting their homes. This indicates a significant portion of the 29,969 residents rely on rental properties, creating robust demand for Section 8 tenants. The median household income stands at $57,377, which directly influences the affordability and utilization of rental vouchers.
A typical market rent of $1,267 consumes a substantial portion of the average income. To put this into perspective, the monthly rent represents approximately 22% of the annual median household income when calculated on a monthly basis ($57,377 divided by 12 months equals $4,781.42 per month; $1,267 divided by $4,781.42 equals about 0.22 or 22%). This high percentage suggests that many residents would find it challenging to afford market-rate rents without assistance, thereby increasing the potential for deep voucher demand.
Comparatively, the Fair Market Rent (FMR) for the area is set at $950 for FY 2024. This lower benchmark indicates that there is a gap between the actual market rent and the FMR, suggesting that landlords who accept Section 8 vouchers might need to adjust their expectations regarding rental income. However, the higher market rent also implies that there could be a mix of tenants, some using vouchers and others paying market rates.
In summary, landlords in ZIP 35611 should anticipate a tenant pool heavily reliant on rental subsidies due to the high proportion of renters and the significant share of income that market rents consume. The expected tenant would likely require a Section 8 voucher to make housing affordable, given the disparity between the $1,267 market rent and the $950 FMR. This analysis underscores the importance of understanding and preparing for the administrative aspects of accepting vouchers while recognizing the stable income they can provide.
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.