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 | $870 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,540 |
| 4 Bedrooms | $1,630 |
| 5 Bedrooms | $1,891 |
| 6 Bedrooms | $2,118 |
| 7 Bedrooms | $2,287 |
| 8 Bedrooms | $2,401 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,240 | $170,560 | 0.73% | D |
| 3BR | $1,540 | $249,675 | 0.62% | D |
| 4BR | $1,630 | $386,803 | 0.42% | F |
| 5BR | $1,891 | $491,553 | 0.38% | F |
U.S. Census Bureau data (2024)
With a Fair Market Rent (FMR) of $1110 for ZIP 35661 in Muscle Shoals, AL, in fiscal year 2024, landlords can expect to align their rental prices closely with the local housing market. The Census Bureau reports a market rent of $1,006, indicating that properties priced at the FMR level will remain competitive. Given the median home value stands at $255,003, it's clear that homeownership is within reach for many residents, yet the renter share of 29.7% suggests a significant portion of the population prefers or requires renting. This balance between homeowners and renters creates a stable demand for rental properties.
The median income of $74,310 provides insight into the financial capacity of potential tenants. While not all households will earn this amount, it sets a benchmark for affordability in the area. With a price-cut share of only 0.2%, it's evident that listings in Muscle Shoals rarely need to be discounted, reflecting the robustness of the local real estate market. This low rate also indicates that properties are likely well-priced from the outset, reducing the risk of overvaluation.
Investors considering Section 8 participation should note the $1110 FMR as the upper limit for rental payments through the program. Given the market rent is slightly below this figure, properties priced at the FMR would still be competitive in the broader rental market. However, the actual payment standard may be lower, depending on the specifics of the local Section 8 program. The median home value and median income figures suggest that while there is a strong potential for a steady stream of eligible tenants, landlords must carefully manage property costs to ensure profitability.
In summary, the data paints a picture of a healthy rental market in Muscle Shoals, AL, with a slight edge towards affordability for both landlords and tenants. For those interested in Section 8 participation, the combination of a reasonable FMR and a high percentage of renters makes it a viable option, though careful consideration of the local payment standard is advised. Verdict: Section 8 participation is feasible but requires diligent management to maintain profitability.
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.