Section 8 Fair Market Rent (FMR) for ZIP 35662 - 2027
Location: Florence-Muscle Shoals, AL | Metro: Florence-Muscle Shoals, AL MSA
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $780 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
To determine if a landlord should invest in ZIP code 35662 for Section 8 properties, follow this decision tree:
- 1) Does the Fair Market Rent (FMR) of $1,030 cover the debt service on a property?
- Yes: If the FMR of $1,030 exceeds the monthly mortgage payment and other fixed costs, then the area is financially viable for Section 8 tenants.
- No: If the FMR does not cover the debt service, investing in this ZIP code would result in financial losses.
- 2) Is the market rent above, at, or below the FMR?
- Above FMR: If market rents exceed $1,030, landlords can consider non-Section 8 tenants who might pay higher rates.
- At FMR: If market rents match the FMR, landlords will be able to attract Section 8 tenants without significant financial strain.
- Below FMR: If market rents are lower than $1,030, landlords should focus on Section 8 tenants to ensure they receive the FMR rate.
- 3) Is there sufficient demand from renters and days on the market (DOM)?
- High demand + Low DOM: If there is a high percentage of renters and properties are listed for a short number of days before being rented, this indicates strong demand for rental properties.
- Moderate demand + Moderate DOM: If demand and DOM are moderate, landlords can still expect to find tenants but may need to wait longer for a vacancy to fill.
- Low demand + High DOM: If there is low demand and properties remain on the market for extended periods, it suggests that finding tenants may be challenging.
The decision to invest in ZIP 35662 hinges on these factors. Without specific data on market rents and the percentage of renters plus DOM, a definitive recommendation cannot be made. However, if the FMR clears debt service and demand is robust, the answer is yes. Otherwise, it depends on the specifics of the local rental market.
Data Sources: FMR data from HUD (2027).
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.