Location: Jackson County, AL | Metro: DeKalb County, AL
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 | $720 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,240 | $238,800 | 0.52% | F |
U.S. Census Bureau data (2024)
Investing in Section 8 properties in ZIP code 35765 presents several challenges that potential landlords must consider. Tenant turnover is a significant concern, with the market rent at $933 compared to the lower Fair Market Rent (FMR) of $780 for fiscal year 2026 in the metropolitan area. This difference can lead to higher tenant churn rates as individuals may seek cheaper housing options outside the Section 8 program.
Vacancy exposure is another risk factor. The Days on Market (DOM) data is currently unavailable, which makes it difficult to predict how long a property might remain vacant between tenants. High vacancy periods can result in lost rental income, impacting the financial viability of the investment.
Deferred maintenance is also a notable issue. With a typical home value of $186,262 and a median income of $64,099, homeowners may struggle to keep up with necessary repairs and upgrades. This can affect the overall quality and appeal of the property, potentially leading to further issues with tenant retention and satisfaction.
However, these risks are balanced by the high concentration of renters in the area. The renter share stands at 20.3%, indicating a strong demand for affordable housing and a likely robust interest in Section 8 vouchers. High renter density often translates into a steady stream of applicants, reducing the likelihood of extended vacancies.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 35765 is moderate. While there are significant challenges, particularly around tenant turnover and maintenance, the high renter population offers some mitigation against vacancy risks.
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.