Location: Cullman County, 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 | $1,010 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,590 |
| 4 Bedrooms | $2,040 |
| 5 Bedrooms | $2,366 |
| 6 Bedrooms | $2,650 |
| 7 Bedrooms | $2,862 |
| 8 Bedrooms | $3,005 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,590 | $260,256 | 0.61% | D |
U.S. Census Bureau data (2024)
The ZIP code 35619 in Cullman County, Alabama, serves as a cash-flow anchor within a Section 8 portfolio strategy. This is due to the favorable financial metrics that support stable and predictable cash flows.
Firstly, the Fair Market Rent (FMR) for ZIP 35619 in fiscal year 2024 is set at $980. In comparison, the market rent stands at $1,041, indicating a modest premium of $61 over the FMR. This positive spread ensures that landlords can charge slightly above the government-subsidized rate, thus generating higher cash flows from their rental properties.
Secondly, the median home value in ZIP 35619 is $245,255. This relatively low figure means that property acquisition costs are manageable, which in turn allows for a lower initial investment and potentially higher returns on investment (ROI) when considering the rental income generated.
The lack of data on price-cut shares and days on market (DOM) suggests that this ZIP code is not particularly volatile or speculative in terms of property appreciation. Therefore, it does not present itself as an ideal appreciation play. Instead, the focus should be on the steady cash flow it provides.
ZIP 35619 also has a 18.4% renter share, meaning nearly one-fifth of the population rents their homes. This percentage is not exceptionally high, but it does indicate a reasonable demand for rental properties. Coupled with a median income of $65,863, there is a sufficient economic base to support the rental market without significant risk of vacancy.
In summary, ZIP 35619 is best suited as a cash-flow anchor in a Section 8 portfolio strategy. The positive spread between the FMR and market rent, combined with the manageable median home value, ensures that landlords can maintain steady and reliable cash flows from their investments. While it does not offer significant opportunities for rapid appreciation, the stability it provides is invaluable for securing long-term financial performance.
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.