Location: Florence-Muscle Shoals, 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 | $750 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,180 |
| 4 Bedrooms | $1,520 |
| 5 Bedrooms | $1,763 |
| 6 Bedrooms | $1,975 |
| 7 Bedrooms | $2,133 |
| 8 Bedrooms | $2,240 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,180 | $235,654 | 0.5% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 35672 hinges on the balance between yield potential and market stability, using the provided figures for analysis. The Fair Market Rent (FMR) for ZIP 35672 is set at $860 for fiscal year 2024, significantly higher than the market rent of $759. This indicates a strong rental yield opportunity, as landlords can potentially charge closer to the FMR, which is above the average market rate.
To understand the stability, consider the following metrics: 22.9% of residents are renters, indicating a moderate level of demand for rental properties. The median household income is $61,925, which suggests that tenants have the financial capacity to meet the higher rent levels set by landlords. However, the lack of data on days on market (DOM) implies uncertainty regarding how quickly properties can be rented out, which is a key indicator of market liquidity and stability.
The median home value in ZIP 35672 is $219,626, providing a benchmark for property values. Given the disparity between the FMR ($860) and the market rent ($759), there's an opportunity for landlords to increase rental income. But, the relatively low percentage of renters (22.9%) and the unknown DOM figure suggest that while yields might be higher, the market could be less stable compared to areas with higher percentages of renters or faster rental turnovers.
In conclusion, ZIP 35672 leans towards being a high-yield/medium-stability market. It is not a flip-style market due to the lack of rapid turnover data, but it offers better-than-average rental rates. The presence of a moderate tenant base and decent income levels supports steady cash flow, though with some caution advised due to the limited data on rental speed and overall market dynamics.
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.