Section 8 Fair Market Rent (FMR) for ZIP 35634 - 2027

Investment Score for ZIP 35634

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	$820
1 Bedroom	$900
2 Bedrooms	$1,170
3 Bedrooms	$1,450
4 Bedrooms	$1,540
5 Bedrooms	$1,786
6 Bedrooms	$2,000
7 Bedrooms	$2,160
8 Bedrooms	$2,268

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	$1,450	$267,705	0.54%	F
4BR	$1,540	$447,074	0.34%	F
5BR	$1,786	$635,449	0.28%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Based on the available data, ZIP 35634, located within the Florence-Muscle Shoals, AL MSA, can serve as a cash-flow anchor within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for ZIP 35634 in fiscal year 2024 is set at $1120, which is notably higher than the current market rent of $914. This spread suggests that properties within this ZIP code can be leased at rates above the market average when participating in the Section 8 program, providing a reliable source of income that exceeds typical rental yields.

The median home value in ZIP 35634 is $281,646, indicating that property values are relatively stable and affordable compared to other areas. However, this figure is slightly above the recent data point of $262,800, suggesting some variability in home values but still maintaining a reasonable range for investment.

ZIP 35634's renter share stands at 17.4%, and the median income is $71,452. These figures imply that there is a moderate demand for rentals, and the local population has sufficient earning power to support rental payments, even those at the higher end of the spectrum as required by the Section 8 program.

Moreover, the low price-cut share of 0.2% and the non-applicable day DOM (Days On Market) suggest that the real estate market in this area is robust and efficient, with minimal need for price adjustments to facilitate sales. This stability is crucial for maintaining consistent cash flow, making ZIP 35634 a solid choice for anchoring a Section 8 portfolio.

In conclusion, the combination of a favorable FMR-to-market rent spread, stable property values, and a moderately strong rental demand makes ZIP 35634 a prime candidate for a cash-flow anchor within a Section 8 portfolio strategy. Landlords and small-portfolio investors can expect steady and reliable income from properties in this area, contributing significantly to their overall financial stability.

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.