Location: Huntsville, AL | Metro: Huntsville, AL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $930 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,900 |
| 5 Bedrooms | $2,204 |
| 6 Bedrooms | $2,468 |
| 7 Bedrooms | $2,665 |
| 8 Bedrooms | $2,798 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 35671 reveals a market that leans towards being a high-yield but low-stability environment. This classification is driven by specific figures related to rental income potential and demographic characteristics.
On the yield axis, the Fair Market Rent (FMR) for ZIP 35671 in fiscal year 2024 is set at $1,410. This is notably higher than the market rent of $657, suggesting a significant opportunity for above-average rental income. However, when compared to the median home value of $290,411, the rental yields are relatively lower, indicating a trade-off between capital appreciation and rental income.
Moving to the stability axis, ZIP 35671 has a renter population comprising 23.4% of the total housing units. This figure suggests a moderate level of tenant turnover risk, as areas with a higher percentage of renters tend to have less stable occupancy rates. The lack of data on days on market (DOM) further underscores the uncertainty regarding the speed at which properties can be rented out, adding another layer of instability. Lastly, the median household income in the area is $86,163, which is a critical factor for stability; however, without additional context on local employment trends and economic conditions, it's challenging to gauge how well this income supports consistent rental demand.
Given these factors, ZIP 35671 appears to be more suited for investors looking for high-yield opportunities rather than those seeking steady cash flow. The potential for higher rental income is evident, but the risks associated with tenant turnover and uncertain rental market dynamics should be carefully considered. For landlords and small-portfolio investors, this might be an area to explore cautiously, perhaps through short-term leases or properties with quick flip potential, rather than long-term buy-and-hold strategies.
Data Sources: FMR data from HUD (2027). 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.