Location: Huntsville, AL | Metro: Huntsville, 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 | $1,460 |
| 1 Bedroom | $1,540 |
| 2 Bedrooms | $1,750 |
| 3 Bedrooms | $2,260 |
| 4 Bedrooms | $2,930 |
| 5 Bedrooms | $3,399 |
| 6 Bedrooms | $3,807 |
| 7 Bedrooms | $4,112 |
| 8 Bedrooms | $4,318 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,260 | $311,633 | 0.73% | D |
| 4BR | $2,930 | $416,299 | 0.7% | D |
| 5BR | $3,399 | $513,405 | 0.66% | D |
U.S. Census Bureau data (2024)
The dynamics of ZIP code 35757 reveal a market in motion, characterized by a balance between rental and ownership trends. With a Fair Market Rent (FMR) of $1720 for the fiscal year 2024, and a Zillow Observed Rent Index (ZORI) of $1,518, there's a clear indication that rental properties are priced slightly below the fair market value, suggesting a competitive rental environment. The low price-cut share of 0.3% points towards a stable housing market where sellers are less inclined to reduce their asking prices, indicating strong seller confidence.
The days on market (DOM) figure of 39 days suggests that homes are selling relatively quickly, which could be an indicator of a robust demand for homeownership in the area. However, the median home value of $344,815 provides context, showing that while homes are selling promptly, they are also valued at a significant level, reflecting a market where affordability might influence purchasing decisions.
The 27.6% renter share highlights a notable portion of the population preferring to rent rather than buy. This high renter share can exert long-term pressure on the housing market, as it signals a consistent demand for rental properties. Landlords and small-portfolio investors should take note of this trend, as it implies a steady clientele for rental properties in the area.
In summary, ZIP 35757 presents a market where rental and ownership dynamics coexist. The relatively quick sales of homes suggest a market where demand meets supply effectively, but the high renter share indicates a persistent need for rental properties, which can be a lucrative opportunity for those willing to invest in the rental sector.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.