Location: Franklin County, 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 | $810 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,300 |
| 4 Bedrooms | $1,310 |
| 5 Bedrooms | $1,520 |
| 6 Bedrooms | $1,702 |
| 7 Bedrooms | $1,838 |
| 8 Bedrooms | $1,930 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,300 | $180,038 | 0.72% | D |
| 4BR | $1,310 | $253,626 | 0.52% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 35653 stands at $52,600, which places significant constraints on the financial capacity of households to afford the market rate rent of $694 per month. This figure represents a substantial portion of their monthly earnings, making it challenging for many residents to secure housing without assistance.
In comparison, the Fair Market Rent (FMR) standard for Section 8 vouchers in the area for fiscal year 2024 is set at $860 per month. This amount exceeds the market rate, indicating that voucher holders have an advantage in finding suitable housing. However, the higher voucher payment does not necessarily translate into better affordability for the average household, given the income levels.
With 24.1% of the 11,481 population being renters, the competition among landlords in ZIP 35653 is likely to be intense. The affordability gap between the median income and both the market rate and voucher payments means that landlords must consider the balance between attracting tenants and maintaining profitability.
The takeaway for landlords is clear: while accepting Section 8 vouchers can offer a steady stream of rental income at a higher rate than the current market, it also comes with additional administrative responsibilities and potential regulatory scrutiny. Landlords should weigh these factors against the benefits of cash-paying tenants who might provide quicker turnover and fewer bureaucratic hurdles.
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.