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 | $760 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,090 | $110,730 | 0.98% | C |
| 3BR | $1,350 | $155,441 | 0.87% | C |
| 4BR | $1,430 | $212,764 | 0.67% | D |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 35660 in Sheffield, AL, reveals a favorable environment for cashflow. The Fair Market Rent (FMR) set by HUD for FY 2024 is $940, while the average market rent based on Census ACS data is $829. This means that landlords participating in the Section 8 program can expect a positive cashflow, as the FMR exceeds the typical market rent by $111 per month.
To further understand the dynamics of the local real estate market, consider the median home value of $133,852. With an average market rent of $829, the rent-to-price ratio stands at approximately 0.77%, indicating that rental income is relatively low compared to property values. However, given the higher FMR for voucher tenants, the effective rent-to-price ratio increases to about 0.92%. This suggests that properties in this area can generate better returns when occupied by voucher tenants.
The data does not provide a median Days on Market (DOM) or a percentage of price cuts, which are typically used to gauge the health of the buying market. In the absence of these metrics, it's important to focus on the cashflow potential rather than the buy-versus-rent dynamics. The significant gap between the HUD FMR and the actual market rent makes cashflow the strongest investor angle in ZIP 35660. Landlords can confidently participate in the Section 8 program knowing they will receive above-market rents, ensuring steady and reliable income streams.
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.