Location: Jackson County, AL | Metro: DeKalb County, AL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
U.S. Census Bureau data (2024)
The classification of ZIP code 35744 hinges on analyzing its yield potential and stability metrics. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is $810, while the market rent stands at $775. This indicates that properties in ZIP 35744 can expect to command rents slightly below the metro average, suggesting a moderate yield environment.
To understand the yield more clearly, consider the median home value of $196,950. At a $775 monthly rental rate, the annual gross rent would be $9,300. If we assume a typical occupancy rate of 95%, the net annual rent would be approximately $8,835. With an average mortgage payment around $1,000 per month based on typical financing terms, the annual mortgage cost would be $12,000. Subtracting the mortgage from the gross rent leaves a negative cash flow of about $3,165 annually before other expenses such as maintenance, insurance, and property taxes. However, if we factor in the FMR of $810, the annual gross rent could potentially rise to $9,720, leading to a net positive cash flow of $780 annually under the same assumptions. This highlights the importance of understanding local market conditions and pricing strategies.
Regarding stability, ZIP 35744 has a renter population of 29.3%, which suggests a relatively stable demand for rentals. However, the lack of data on days on market (DOM) and the income figure of $54,868 provide a mixed picture. A higher DOM typically indicates slower sales and lower turnover rates, which can be beneficial for long-term investment but may hinder short-term flipping activities. The income figure of $54,868 is crucial for assessing the ability of residents to pay rent. Given that the median income is significantly higher than the median rent ($775), it implies that most residents can afford their housing costs, contributing to a stable rental market.
Based on these figures, ZIP 35744 leans towards being a steady-cashflow zone. While it does not offer the highest yields due to its rental rates being below the metro average, the strong income-to-rent ratio and significant renter population ensure a consistent and predictable cash flow. The potential for higher rents closer to the FMR also provides some upside for yield enhancement, but the primary characteristic is stability rather than volatility or high-risk, high-reward scenarios.
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.