Section 8 Fair Market Rent (FMR) for ZIP 35748 - 2027

Location: Jackson County, AL | Metro: Huntsville, AL MSA

Investment Score for ZIP 35748

N/A

Monthly Rent (2BR)

$1,180

Median Price (2BR)

$N/A

1% Rule

Annual Yield

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

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

Investment Analysis by Bedroom Size

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

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$1,530	$348,635	0.44%	F
4BR	$1,900	$645,261	0.29%	F
5BR	$2,204	$791,028	0.28%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

7,578

Median Household Income

$103,563

Housing Units

3,249

Renter Percentage

10.2%

Occupancy Rate

89.0%

Renter Occupied

295

The ZIP code 35748, located in Alabama, offers a stable environment for real estate investment, particularly for those interested in the Section 8 housing market. This area benefits from a mix of rental and homeownership options, making it attractive to various demographics.

The Fair Market Rent (FMR) for a two-bedroom apartment in ZIP 35748 for fiscal year 2024 is set at $930, indicating the government's benchmark for affordable rental rates in the area.
The market rent for a typical two-bedroom unit, based on Census ACS data, stands at $847, suggesting that there is a slight premium when considering Section 8 vouchers, which cover up to the FMR amount.
The median home value in the area is $359,724, reflecting a middle-class neighborhood where both renters and homeowners coexist.
Renters make up 10.2% of the total population, a figure that points to a smaller but still significant portion of residents who might be eligible for Section 8 assistance.
The median income in ZIP 35748 is $103,563, which is higher than the national average, implying a robust local economy that supports a variety of housing needs.

In summary, ZIP 35748 presents a balanced market for landlords and small-portfolio investors. With the Fair Market Rent slightly above the market rent, landlords can leverage Section 8 vouchers to fill vacancies without necessarily reducing their income. The relatively high median income suggests financial stability among residents, while the median home value indicates a middle-tier market. Although the renter share is modest, the combination of these factors creates a favorable climate for property owners seeking steady returns through Section 8 participation.

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.