Location: Franklin County, 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 | $720 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,280 |
| 4 Bedrooms | $1,350 |
| 5 Bedrooms | $1,566 |
| 6 Bedrooms | $1,754 |
| 7 Bedrooms | $1,894 |
| 8 Bedrooms | $1,989 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,030 | $134,676 | 0.76% | D |
| 3BR | $1,280 | $209,331 | 0.61% | D |
| 4BR | $1,350 | $322,324 | 0.42% | F |
| 5BR | $1,566 | $425,960 | 0.37% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 35674, located in Tuscumbia, Alabama, reveals a unique blend of yield and stability that leans towards a moderate investment opportunity.
On the yield axis, the Federal Market Rent (FMR) for ZIP 35674 in fiscal year 2024 is set at $960. This is slightly above the local market rent of $950, indicating a modest potential for higher rental income compared to the average market rate. However, the home value in this area stands at $200,141, which is relatively low. This suggests that while there is some potential for yield, it is not exceptionally high given the property values.
Moving to the stability axis, the percentage of renters is 25.3%, which is lower than the national average and indicates a less volatile tenant base. The days on market (DOM) for properties is 31 days, suggesting a reasonable turnover rate but not an excessively long time to find tenants. Additionally, the median household income is $64,706, providing a solid economic foundation for rental payments.
Considering these factors, ZIP 35674 does not fit neatly into either a high-yield/low-stability "flip-style" market or a steady-cashflow zone. Instead, it represents a middle ground where investors can expect a modest return on investment without significant risk. The slight premium in FMR over market rent combined with the relatively low home value provides an opportunity for positive cash flow. Meanwhile, the lower-than-average percentage of renters and median income levels contribute to a stable environment, reducing the likelihood of frequent vacancies or default risks.
In conclusion, for landlords and small-portfolio investors looking to balance yield and stability, ZIP 35674 offers a viable option. It is neither a high-risk, high-reward scenario nor a guaranteed low-risk, low-reward situation. Rather, it presents a moderate investment climate with predictable returns and manageable risks.
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.