Section 8 Fair Market Rent (FMR) for ZIP 35747 - 2027

Investment Score for ZIP 35747

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A landlord considering purchasing a property in ZIP code 35747 for Section 8 purposes must follow a structured decision-making process. The first step involves evaluating if the Fair Market Rent (FMR) of $820 can cover the debt service on a property priced at $293,977. To determine this, calculate the monthly mortgage payment based on typical financing terms and compare it against the FMR.

If the FMR of $820 exceeds the monthly debt service, proceed to the second question: how does the market rent of $731 (as per Census ACS data) compare to the FMR? If the market rent is below the FMR, there's potential to secure higher rental income via Section 8 vouchers. However, if the market rent equals or surpasses the FMR, the attractiveness of Section 8 properties diminishes since the voucher amount might not be sufficient to compete with market rates.

The third and final evaluation concerns demand. With 12.1% of the population being renters, the market has a notable but not overwhelming share of potential tenants. Unfortunately, the data lacks details on the average days on the market (DOM), which would help gauge how quickly properties are rented out. This absence makes it challenging to definitively assess the speed and ease of finding tenants.

Decision Tree:

• Does FMR $820 clear debt service on a $293,977 property?
  • Yes: The FMR covers the monthly debt service, making the property financially viable for Section 8. Continue to the next question.
  • No: The property is not financially feasible for Section 8 under these conditions. Consider other investment opportunities.
• Is market rent $731 above, at, or below FMR?
  • Above: The market rent exceeds the FMR, reducing the property's appeal for Section 8. It depends on whether the landlord can find a balance between market rents and Section 8 subsidies.
  • At or Below: The market rent is at or below the FMR, indicating a strong possibility that Section 8 vouchers will cover the rent. This scenario supports a positive outlook for Section 8 investments.
• Are 12.1% renters + N/A-day DOM enough demand?
  • Yes: If the demand from renters is high enough, despite the lack of DOM data, the property could still be a good investment. Monitor local rental vacancy rates to ensure consistent demand.
  • No: Without sufficient data on DOM, and if the percentage of renters is deemed insufficient, the investment in this ZIP code is questionable. Further research into the local rental market dynamics is advised.

In conclusion, for ZIP 35747, the viability of a Section 8 investment hinges on the ability of the FMR to cover debt service and the relationship between market rent and FMR. The unclear demand due to missing DOM data adds a layer of uncertainty. Landlords should carefully weigh these factors before deciding to invest.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.