Location: Florence-Muscle Shoals, 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 | $650 |
| 1 Bedroom | $710 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,140 |
| 4 Bedrooms | $1,270 |
| 5 Bedrooms | $1,473 |
| 6 Bedrooms | $1,650 |
| 7 Bedrooms | $1,782 |
| 8 Bedrooms | $1,871 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,140 | $224,623 | 0.51% | F |
U.S. Census Bureau data (2024)
The ZIP code 35648 is situated in a tranquil suburban neighborhood, characterized by a relatively small population of 3,128 residents. Only 12.4% of the inhabitants are renters, indicating a community primarily composed of homeowners, with a median income of $79,500. The median home value stands at $219,154, reflecting a middle-class area where property ownership is prevalent.
Moving into the realm of rental economics, the Fair Market Rent (FMR) for ZIP 35648 in fiscal year 2024 is set at $860. This figure contrasts sharply with the actual market rent, which is reported to be $661 according to the Census American Community Survey (ACS). The disparity between the FMR and the market rent suggests an opportunity for landlords and small-portfolio investors who can leverage the higher FMR to secure stable rental income through Section 8 vouchers.
Given these economic conditions, ZIP 35648 is well-suited for hands-off voucher operators. The higher FMR compared to the market rent ensures that landlords can receive a guaranteed income stream without the need for extensive property management. However, for those interested in a more hands-on approach, there's potential for value-add investments. By renovating properties and positioning them slightly above the average market rent but still within the FMR, investors could attract tenants willing to pay more for better quality housing while maintaining the stability of Section 8 payments.
In conclusion, ZIP 35648 offers a balanced environment for both passive and active Section 8 investors. The existing conditions favor a hands-off strategy due to the guaranteed income from vouchers, yet there's room for hands-on investors to create added value through property improvements, thereby capturing a segment of the market willing to pay closer to the FMR.
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.