Section 8 Fair Market Rent (FMR) for ZIP 35760 - 2027

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

Investment Score for ZIP 35760

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	$260,258	0.59%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

4,643

Median Household Income

$71,622

Housing Units

1,847

Renter Percentage

16.2%

Occupancy Rate

90.6%

Renter Occupied

271

To determine if you should buy in ZIP code 35760 for Section 8 purposes, follow this decision tree:

Step 1: Debt Service Coverage Ratio (DSCR)

The Fair Market Rent (FMR) for ZIP 35760 in fiscal year 2024 is set at $1080. Calculate whether this amount can cover the debt service on a property valued at $228,235. If the DSCR is less than 1, meaning that the income does not cover the expenses, then the answer is No. Proceed only if the DSCR is greater than or equal to 1.

Step 2: Market Rent Comparison

The average market rent in ZIP 35760, according to the Census ACS, is $1,089. Compare this figure to the FMR of $1080. If market rent is above FMR, it indicates a positive rental market trend, making the answer Yes. If market rent is exactly at FMR, the market is stable but not growing, leading to an It Depends scenario. If market rent is below FMR, which is unlikely given the figures provided, it would suggest a weak rental market, resulting in a No.

Step 3: Rental Demand Assessment

In ZIP 35760, 16.2% of residents are renters. Additionally, the Days on Market (DOM) is listed as N/A, which could mean there's insufficient data or the market is highly competitive. Given the percentage of renters, there is a reasonable demand for rental properties. However, without DOM data, it's challenging to gauge how quickly properties are being rented. In this case, the answer is It Depends, as it requires further investigation into local rental dynamics.

Decision Outcome

If the DSCR is greater than or equal to 1 and market rent is above FMR, the answer is Yes. The property can be financially viable for Section 8 tenants, and the rental market supports higher rents.
If the DSCR is less than 1 or market rent is below FMR, the answer is No. These conditions indicate that the property is either too expensive to manage with Section 8 funds or the market does not support the necessary rent levels.
If the DSCR is greater than or equal to 1 but market rent is at FMR, or if the DOM data is unavailable, the answer is It Depends. You need to assess other factors such as vacancy rates, tenant preferences, and competition to make a final decision.

Note: Ensure that your analysis includes the cost of property management, maintenance, and potential vacancies when calculating the DSCR. This will provide a more accurate picture of the financial feasibility of the investment.

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.