Location: Decatur, 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 | $750 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,180 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,180 | $233,877 | 0.5% | F |
| 4BR | $1,520 | $309,347 | 0.49% | F |
U.S. Census Bureau data (2024)
The ZIP code 35650 is primarily characterized by a modest rental market presence. With a population of 13,473, only 14.3% of residents are renters, indicating that homeownership dominates the housing landscape in this area. This suggests that the demand for Section 8 vouchers is relatively shallow compared to areas with higher percentages of renters.
The median household income in ZIP 35650 stands at $67,416, which provides context for the affordability of the $733 market rent. To put this into perspective, the average rent consumes approximately 13.3% of the median household income. This figure is calculated by dividing the annual market rent ($733 * 12 months) by the median household income and multiplying by 100 to get the percentage. The Fair Market Rent (FMR) for the area, set at $860 for fiscal year 2024, is slightly higher than the current market rent, suggesting that the rental market in this ZIP is somewhat below the benchmark established by the federal government.
A landlord in ZIP 35650 can expect tenants who are likely to be dependent on Section 8 vouchers due to the lower income levels relative to the FMR. These tenants will have a household income that makes up a significant portion of their budget to cover rent, utilities, and other living expenses. Landlords should prepare for tenants who may require assistance in managing their finances and possibly have limited savings for unexpected repairs or maintenance issues. It's important to note that while the voucher program helps cover rent costs, landlords must ensure that they comply with all HUD regulations and standards when accepting voucher holders.
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.