Section 8 Fair Market Rent (FMR) for ZIP 35749 - 2027

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

Investment Score for ZIP 35749

N/A

Monthly Rent (2BR)

$1,630

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	$1,360
1 Bedroom	$1,430
2 Bedrooms	$1,630
3 Bedrooms	$2,110
4 Bedrooms	$2,720
5 Bedrooms	$3,155
6 Bedrooms	$3,534
7 Bedrooms	$3,817
8 Bedrooms	$4,008

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	$2,110	$284,485	0.74%	D
4BR	$2,720	$357,870	0.76%	D
5BR	$3,155	$460,056	0.69%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

30,710

Median Household Income

$103,901

Housing Units

10,563

Renter Percentage

12.4%

Occupancy Rate

97.1%

Renter Occupied

1,269

ZIP code 35749, located within the Huntsville, AL MSA, presents a unique profile compared to the typical ZIP codes in the region. The Fair Market Rent (FMR) for 35749 is set at $1450 for the fiscal year 2024, which is notably lower than the market rent of $1,746. This discrepancy suggests that 35749 could be considered a value pocket within the Huntsville metro area.

The median home value in 35749 stands at $312,039, which is likely below the average home value found across the broader Huntsville MSA. However, the renter share of 12.4% is a critical point of consideration. While this percentage is relatively low, it's important to note that a higher-than-average renter share in areas with below-average home values can indicate a strong presence of Section 8 tenants. This makes 35749 a potentially attractive location for landlords and small-portfolio investors looking to capitalize on the Section 8 program.

To further contextualize the position of 35749 within the Huntsville MSA, consider the following:

FMR vs. Market Rent: The FMR being significantly lower than the market rent points to an area where subsidized housing may be more prevalent, making it a prime location for properties that qualify for Section 8 assistance.
Renter Share: Though the renter share is not exceptionally high, it is still noteworthy when paired with the lower home values. This combination often signifies a sweet spot for Section 8 properties, offering landlords a balance between manageable property costs and a steady tenant base.

In summary, 35749 appears to be a value pocket within the Huntsville, AL MSA. It offers lower FMR and home values compared to the metro average, while maintaining a modest renter share. These characteristics make it particularly suitable for investors interested in Section 8 properties, ensuring a stable income stream without the need for premium pricing.

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.