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 | $1,380 |
| 1 Bedroom | $1,450 |
| 2 Bedrooms | $1,650 |
| 3 Bedrooms | $2,130 |
| 4 Bedrooms | $2,760 |
| 5 Bedrooms | $3,202 |
| 6 Bedrooms | $3,586 |
| 7 Bedrooms | $3,873 |
| 8 Bedrooms | $4,067 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,130 | $285,668 | 0.75% | D |
| 4BR | $2,760 | $360,803 | 0.76% | D |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 35759 in fiscal year 2024 is set at $1,810. This figure represents the maximum amount that a landlord can charge for rent under the Section 8 Housing Choice Voucher program. It's important to note that this is not the rent you will receive; it's the payment standard used to determine the amount of subsidy a tenant receives.
In comparison, the local market rent, known as the ZORI (Zillow Observed Rent Index), stands at $1,773. This indicates that the FMR is slightly above the average market rent, which could be beneficial for landlords participating in the Section 8 program as it ensures they are not significantly below market rates.
The demand for rental properties in this area is strong, with renters comprising 9.3% of the population. This suggests a healthy rental market where there is a consistent need for affordable housing options. The median home value in the area is around $327,000, which gives an indication of the acquisition cost if you're looking to purchase a property to convert into a rental.
Before proceeding with your first Section 8 rental, verify that the property meets all the necessary requirements for the program. This includes ensuring that the unit passes a Housing Quality Standards (HQS) inspection, which checks for safety, health, and habitability standards. This step is crucial as it determines whether the property qualifies for the program and can avoid potential delays or rejections.
Section 8 rentals offer a stable income stream, as payments are made directly by the government on behalf of the tenant. However, landlords must adhere to strict guidelines and undergo regular inspections. The slightly higher FMR compared to the local ZORI makes it a viable option for landlords in ZIP 35759, ensuring they receive fair compensation while providing affordable housing to tenants.
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.