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 | $1,020 |
| 1 Bedroom | $1,070 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $2,040 |
| 5 Bedrooms | $2,366 |
| 6 Bedrooms | $2,650 |
| 7 Bedrooms | $2,862 |
| 8 Bedrooms | $3,005 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,580 | $268,650 | 0.59% | F |
| 4BR | $2,040 | $345,258 | 0.59% | F |
| 5BR | $2,366 | $481,786 | 0.49% | F |
U.S. Census Bureau data (2024)
The ZIP code 35761, located in Huntsville, AL MSA metro, can serve as a valuable component in a Section 8 portfolio strategy. It is best categorized as a cash-flow anchor due to the significant spread between the Fair Market Rent (FMR) for a one-bedroom unit in FY 2024 ($1250) and the market rent ($1,698). This gap provides an opportunity for landlords to secure steady rental income through Section 8 vouchers, ensuring that tenants can afford to pay the rent without financial strain.
The median home value in ZIP 35761 stands at $293,577, which is relatively stable. This stability, combined with the fact that only 0.2% of homes are listed with a price cut, suggests that property values are unlikely to fluctuate dramatically, making it a reliable choice for maintaining consistent cash flow.
Additionally, the average days on market (DOM) for homes in this area is not provided, but given the low percentage of homes needing price cuts, it's reasonable to infer that the real estate market is robust and properties sell relatively quickly. This quick turnover supports the idea that 35761 is a cash-flow anchor, as it ensures that landlords can easily find tenants willing to pay the market rate or close to it.
The renter share of 17.5% and the median income of $79,440 indicate a diverse economic landscape where a portion of residents prefer renting over owning. While this could suggest some diversification benefits, the primary strength of ZIP 35761 lies in its ability to provide stable cash flows through Section 8 housing programs. The gap between the FMR and market rent means that landlords can expect to receive a subsidy that covers the difference, thus ensuring that the property remains profitable even if the market rate fluctuates.
In summary, ZIP 35761 is best suited as a cash-flow anchor in a Section 8 portfolio strategy, thanks to its substantial spread between FMR and market rent, along with the stability of property values and the robustness of the local real estate market.
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.