Section 8 Fair Market Rent (FMR) for ZIP 35652 - 2027

Location: Huntsville, AL | Metro: Florence-Muscle Shoals, AL MSA

Investment Score for ZIP 35652

N/A
Monthly Rent (2BR)
$1,180
Median Price (2BR)
$N/A
1% Rule
0%
Annual Yield
0%

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$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

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 $1,530 $271,036 0.56% F
4BR $1,900 $405,327 0.47% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
9,173
Median Household Income
$66,798
Housing Units
4,678
Renter Percentage
19.9%
Occupancy Rate
82.7%
Renter Occupied
770

The ZIP code 35652 has a population of 9,173 residents, with 19.9% being renters. This indicates that while there is a significant portion of the population renting, it is not predominantly a renter-heavy area. The median household income stands at $66,798, which provides context for the local rental market.

In this market, the typical rent is $781. To understand the financial burden this represents, we can calculate that this rent eats up approximately 11.7% of the median household income. This percentage is relatively low, suggesting that most residents can afford the market rent without needing assistance.

However, comparing the market rent of $781 to the Fair Market Rent (FMR) of $1040 (for FY 2024), it becomes clear that there is potential for Section 8 voucher holders to find housing within their budget. The FMR is higher than the market rent, indicating that the area might attract tenants who are eligible for housing vouchers due to the relative affordability of the market rent compared to the FMR.

A landlord in ZIP 35652 should expect a tenant pool that includes a mix of individuals and families who may rely on Section 8 vouchers to supplement their rental payments. Given the median income level and the market rent, these tenants would likely be those whose incomes are below the area median income (AMI) threshold, often set around 50% AMI for eligibility for Section 8 programs.

To summarize, while ZIP 35652 is not dominated by renters, there is a notable presence of them. The market rent is lower than the FMR, making it feasible for Section 8 voucher holders to find suitable housing. Landlords should prepare for tenants who may require assistance through housing vouchers to meet their monthly rental obligations, particularly those whose incomes are significantly below the median income of the area.

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.