Location: Huntsville, AL | Metro: Huntsville, 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 | $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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,530 | $247,865 | 0.62% | D |
| 4BR | $1,900 | $317,722 | 0.6% | F |
U.S. Census Bureau data (2024)
A skeptical investor looking into ZIP 35739 might have several concerns regarding the financial viability of investing in properties under the Section 8 program. Here's how the data addresses these concerns.
Objection 1: Will the Fair Market Rent (FMR) of $1,110 for ZIP 35739 in fiscal year 2024 cover the mortgage on a $254,075 home?
The FMR of $1,110 is the maximum amount that a landlord can charge for a Section 8 rental unit. To determine if this covers the mortgage, we must consider the interest rate and loan term. Assuming a 30-year fixed-rate mortgage at an average rate of 4.5%, the monthly mortgage payment for a $254,075 home would be approximately $1,265. This means the FMR does not fully cover the mortgage payment, leaving a shortfall of around $155 per month. However, it's important to note that property values and mortgage rates fluctuate, so actual costs could vary.
Objection 2: Is there enough renter demand at 13.5%?
The 13.5% figure represents the percentage of households in ZIP 35739 that qualify for Section 8 assistance based on income levels. While this indicates a moderate level of demand, it does not guarantee occupancy. The actual number of eligible renters seeking Section 8 housing and the competition among landlords for these tenants must also be considered. In ZIP 35739, the data suggests that demand is present but not overwhelming, and landlords should be prepared for potential vacancies.
Objection 3: Will vouchers keep pace with market rents of $830?
The voucher amount is typically lower than the FMR, which is set at $1,110 for ZIP 35739 in FY 2024. Given the current market rent of $830, vouchers are likely to cover most of the rent, but whether they will keep pace with future increases depends on the rate at which FMRs and market rents rise. Historically, FMRs have adjusted annually, often in line with inflation and local market conditions. However, the exact alignment between voucher amounts and market rents cannot be guaranteed without analyzing historical trends and future projections specific to ZIP 35739.
In summary, while the data provides insights into the challenges and opportunities in ZIP 35739, it highlights the need for careful financial planning and awareness of local market dynamics. The FMR does not fully cover the mortgage on a $254,075 home, demand for Section 8 rentals is moderate, and the alignment of voucher amounts with future market rents remains uncertain.
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.