Location: Marshall County, AL | Metro: Decatur, 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 | $750 |
| 1 Bedroom | $760 |
| 2 Bedrooms | $930 |
| 3 Bedrooms | $1,200 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,200 | $284,084 | 0.42% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 35754 in fiscal year 2024 is set at $860. This figure represents the maximum amount that a landlord can charge for rent under the Section 8 program. It's important to note that this is not necessarily the rent that will be paid by individual tenants; it's the benchmark used by the Housing Choice Voucher Program to ensure rents are reasonable.
In comparison, the average rent in ZIP 35754, based on recent Census American Community Survey (ACS) data, stands at $701. This suggests that the FMR is higher than the typical market rate, which could be advantageous for landlords participating in the Section 8 program as they might receive a slightly better rate than the local average.
The demand for rentals in this area is robust, with 16.9% of the population being renters. This high percentage indicates a significant portion of the community looking for housing, including those who might qualify for Section 8 assistance. However, it's crucial to understand that while there is demand, not all renters will have vouchers, so the pool of potential Section 8 tenants is smaller than the overall rental market.
If you're considering purchasing a property for your first Section 8 rental in ZIP 35754, the median home value is $236,109. This figure reflects the typical cost of acquiring a home in the area, which should factor into your investment calculations. Remember, the initial investment in a property is just one part of the equation; ongoing maintenance costs and vacancy rates must also be considered.
Before finalizing your decision to enter the Section 8 market, verify that the property meets all necessary inspection criteria. The Housing Authority conducts thorough inspections to ensure homes meet safety and quality standards, and failing these inspections can delay or prevent you from renting to a Section 8 tenant. Ensure your property is up to code and ready for inspection to avoid unnecessary complications.
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.