Location: Cullman County, AL | Metro: Decatur, 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 | $770 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,220 | $286,248 | 0.43% | F |
| 4BR | $1,570 | $410,374 | 0.38% | F |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP 35670 is poised for stability and potential growth over the next 12-24 months, anchored by a median home value of $239,999. This figure suggests that homeownership remains accessible to a broad range of buyers, which is critical for maintaining demand. The fact that only 0.2% of listings have been reduced indicates that sellers are holding firm on their asking prices, a sign of confidence in the local housing market. The median days on market (DOM) being listed as N/A could imply either very quick sales or an exceptionally low inventory, both scenarios that typically favor sellers. Rapid sales or a seller's market mean that pricing power rests firmly with landlords and property owners, allowing them to command higher prices or rents without significant concessions.
On the rental side, the forward-moving rent (FMR) for ZIP 35670 in fiscal year 2024 is projected at $890, compared to the current market rate of $781 based on Census ACS data. This suggests a positive trend in rental income potential, indicating that landlords can expect to see modest increases in rent as the market adjusts to meet the projected FMR. The gap between the FMR and current market rates also signals a possible upward pressure on rental prices, driven by anticipated economic conditions and supply-demand dynamics.
For long-hold investors, the setup implies a realistic appreciation thesis. With stable home values and a slight uptick in rental rates, there is a solid foundation for capital appreciation. However, it's important to note that the appreciation will likely be gradual rather than explosive, aligning with the steady increase in FMR and the current median home value. Long-term investors should anticipate a conservative but steady growth in property values, which complements the rising rental income. This combination supports a strategy focused on long-term gains and consistent cash flow, rather than short-term speculative investments.
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.