Location: Franklin County, 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 | $720 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,350 |
| 5 Bedrooms | $1,566 |
| 6 Bedrooms | $1,754 |
| 7 Bedrooms | $1,894 |
| 8 Bedrooms | $1,989 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,280 | $151,403 | 0.85% | C |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 35616 are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for FY 2024 is $950. However, the local market rent, according to Census ACS data, is $793. This means landlords have a slight cushion above the average market rate when participating in the program.
A landlord might wonder what exactly a voucher pays once the tenant's portion and utility allowances are considered. Here’s a breakdown:
In ZIP 35616, the voucher system ensures that the total rent plus utilities does not exceed $950. If the tenant's share is less than the market rent of $793, the voucher will make up the difference. For instance, if a tenant's share is $600, the voucher would cover the remaining $150 to reach the market rent of $750, assuming utilities are included in the $950 limit.
The typical reimbursement gap or surplus for a two-bedroom apartment in ZIP 35616 can be calculated by comparing the SAFMR to the local market rent. With the SAFMR at $950 and the market rent at $793, there is a surplus of $157 per month for landlords who participate in the program. This surplus is due to the SAFMR being higher than the actual market rent in the area, providing landlords with a financial benefit over the average rental rates.
Landlords should note that while the SAFMR provides a cap, the actual reimbursement can vary based on the tenant's contribution and the specific utility costs. Nonetheless, the overall economic impact of Section 8 in ZIP 35616 leans towards a positive outcome for landlords, given the current SAFMR and market conditions.
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.