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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,530 | $256,683 | 0.6% | F |
| 4BR | $1,900 | $319,710 | 0.59% | F |
U.S. Census Bureau data (2024)
To strategically position ZIP 35620 within a Section 8 portfolio, consider its role as an appreciation play. The Fiscal Year 2024 Fair Market Rent (FMR) for ZIP 35620 is set at $1200, which is notably higher than the current market rent of $825. This indicates that rental properties in this area have potential for increased valuations as the market adjusts to align with the higher FMR.
The median home value in ZIP 35620 stands at $263,509, suggesting that property values are already established but could appreciate further due to the rising rental standards. The fact that there is a 0.2% price-cut share and a non-applicable day on market (DOM) suggests that homes in this ZIP code sell close to their asking price without significant discounts, implying strong demand and stability in the housing market.
While the median income of $78,247 is relatively high, the 15.4% renter share means that a significant portion of the population is still reliant on rental housing, including Section 8 vouchers. This mix of factors makes ZIP 35620 an ideal appreciation play within a Section 8 portfolio. Landlords can expect to see their investment properties increase in value as the market rents rise to meet the FMR levels, thereby enhancing the overall equity and value of their holdings over time.
The spread between the FMR and the current market rent also offers a cushion for potential increases in maintenance costs or other operational expenses, ensuring that the property remains financially viable even as costs rise. In conclusion, ZIP 35620 presents a compelling opportunity for appreciation, making it a valuable addition to any Section 8-focused real estate investment strategy.
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.