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 | $1,200 |
| 1 Bedroom | $1,260 |
| 2 Bedrooms | $1,440 |
| 3 Bedrooms | $1,860 |
| 4 Bedrooms | $2,410 |
| 5 Bedrooms | $2,796 |
| 6 Bedrooms | $3,132 |
| 7 Bedrooms | $3,383 |
| 8 Bedrooms | $3,552 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,860 | $294,193 | 0.63% | D |
| 4BR | $2,410 | $405,484 | 0.59% | F |
| 5BR | $2,796 | $535,223 | 0.52% | F |
U.S. Census Bureau data (2024)
In ZIP code 35613, the economics of Section 8 housing involve a specific calculation that can affect a landlord's bottom line. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for FY 2024 is set at $1300. This figure represents the maximum amount that the Housing Choice Voucher program will pay towards rent for such a unit in this specific ZIP code.
The local market rent, as measured by ZORI (Zillow Observed Rent Index), is higher at $1,754. This means that without a voucher, landlords could potentially charge more for a similar two-bedroom rental property.
A landlord participating in the Section 8 program should understand that the actual reimbursement received involves several components. The voucher pays up to 30% of the SAFMR toward utilities, which in this case would be approximately $390. The tenant is responsible for paying 30% of their adjusted income toward the total rent, including utilities. If we assume an average adjusted income of $1,000 per month, the tenant's contribution would be around $300.
The remaining 70% of the SAFMR, which is $910, is what the government will pay directly to the landlord. However, since the tenant also contributes, the total reimbursement to the landlord would be the sum of these amounts: the government's $910 plus the tenant's $300, totaling $1210.
This calculation shows that landlords receive less than the SAFMR due to the tenant's share and utility allowances. Given the local market rent of $1,754, there is a significant gap between what a landlord might typically charge and what they would receive under the Section 8 program.
To summarize, the reimbursement gap for a two-bedroom rental in ZIP 35613 is $544 ($1,754 - $1,210). This means landlords must consider whether the reduced rent is worth the administrative and management benefits of having a stable tenant base subsidized by the government.
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.