Location: Huntsville, AL | Metro: Florence-Muscle Shoals, 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 | $980 |
| 1 Bedroom | $1,040 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,970 |
| 5 Bedrooms | $2,285 |
| 6 Bedrooms | $2,559 |
| 7 Bedrooms | $2,764 |
| 8 Bedrooms | $2,902 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,530 | $261,603 | 0.58% | F |
U.S. Census Bureau data (2024)
The ZIP code 35614, located within the Huntsville, AL Metropolitan Statistical Area (MSA), presents a unique profile compared to typical ZIP codes in the region. Its Fair Market Rent (FMR) for FY 2024 is set at $1140, which is higher than the market rent of $925 observed in the area. This suggests that while the government's rental subsidy rates are generous, the actual market may not be demanding such high rents, potentially creating an opportunity for landlords who can attract non-subsidized tenants.
The median home value in 35614 stands at $254,325, indicating that it is neither the most expensive nor the most affordable neighborhood within the Huntsville MSA. This places it squarely in the mid-tier range when considering home values across the broader metropolitan area.
A noteworthy aspect of 35614 is its 21.2% renter share. This figure is indicative of a neighborhood where a significant portion of residents are renters. When juxtaposed against the lower market rent and higher FMR, this could suggest that 35614 is particularly attractive for Section 8 participants. The disparity between the FMR and the market rent, combined with a relatively high renter share, might make 35614 a prime location for landlords seeking to benefit from the Section 8 program.
However, the median home value is not unusually low for the Huntsville MSA, which means that while 35614 may offer some advantages for Section 8 tenants and landlords, it is not necessarily a value pocket in terms of overall housing costs. Instead, it appears to be a balanced neighborhood, offering opportunities for both subsidized and non-subsidized rentals, without being at the extreme ends of the affordability spectrum.
In summary, 35614 within the Huntsville, AL MSA is best described as a mid-tier neighborhood, with a slight lean towards being a sweet spot for Section 8 investments due to its favorable renter share and the discrepancy between FMR and market rent. Landlords and small-portfolio investors should consider the potential benefits of this ZIP code for attracting subsidized tenants, while also noting the presence of a competitive market rent environment.
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.