Section 8 Fair Market Rent (FMR) for ZIP 35622 - 2027

Location: Cullman County, AL | Metro: Decatur, AL MSA

Investment Score for ZIP 35622

N/A

Monthly Rent (2BR)

$1,050

Median Price (2BR)

$N/A

1% Rule

Annual Yield

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$840
1 Bedroom	$850
2 Bedrooms	$1,050
3 Bedrooms	$1,360
4 Bedrooms	$1,700
5 Bedrooms	$1,972
6 Bedrooms	$2,209
7 Bedrooms	$2,386
8 Bedrooms	$2,505

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$1,360	$223,874	0.61%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

6,830

Median Household Income

$66,506

Housing Units

2,765

Renter Percentage

16.3%

Occupancy Rate

92.0%

Renter Occupied

414

The ZIP code 35622, located in Alabama, offers a stable real estate market with particular interest for those involved in Section 8 housing. This area is characterized by a mix of residential properties, including both rental units and owner-occupied homes, making it a prime location for investors looking to diversify their portfolios.

Fair Market Rent (FMR) for ZIP 35622 in fiscal year 2024 is set at $1040. This figure represents the maximum amount that a Section 8 tenant can be expected to pay for a standard two-bedroom apartment, providing landlords with a clear guideline for pricing.
The average market rent for the area is $838, according to recent Census American Community Survey data. This indicates that the rental market is below the FMR, suggesting potential for higher rents if properties are well-managed and maintained.
The median home value in ZIP 35622 is $207,558. This relatively low cost allows investors to acquire properties at a price that can still generate significant returns through rental income or appreciation.
Renters make up 16.3% of the population, which means there is a notable demand for rental properties, especially those that cater to the needs of families who might qualify for Section 8 assistance.
The median household income is $66,506, indicating that residents have the financial stability to meet rental obligations, although they may rely on government subsidies to afford housing.
The Days on Market (DOM) is not available, which could imply either a very active or a very stable market where listings move quickly, or where property turnover is minimal.

Investors should note that the disparity between the Fair Market Rent and the average market rent suggests a potential to increase rental rates modestly without alienating tenants. The median home value provides a solid base for investment, while the percentage of renters and median income figures indicate a steady demand for affordable housing. The lack of DOM data could mean that the market is efficient, but it also leaves room for speculation about the true velocity of property transactions. Overall, ZIP 35622 presents a balanced opportunity for investors interested in the Section 8 program, with the potential for good returns and manageable risks.

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.