Section 8 Fair Market Rent (FMR) for ZIP 35771 - 2027

Investment Score for ZIP 35771

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

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A landlord considering ZIP 35771 for Section 8 investments must navigate several key factors to make an informed decision. The first step involves evaluating whether the Fair Market Rent (FMR) of $780 can cover the debt service on a property valued at $194,161. This requires calculating the expected monthly mortgage payment, including principal, interest, taxes, and insurance, to see if it aligns with the FMR. If the FMR does indeed exceed the total monthly debt service, then the investment becomes financially viable under Section 8 guidelines.

The second question is whether the market rent of $724 is above, at, or below the FMR. In ZIP 35771, the market rent is slightly below the FMR, which suggests that while there's a gap, it's narrow enough that landlords might still find some margin for profit. However, if the gap widens, it could signal a less favorable environment for Section 8 properties due to reduced profitability.

The third consideration is the rental demand. With 18.6% of residents being renters and the days on market (DOM) status marked as 'N/A', we need to delve deeper into the local rental market dynamics. The percentage of renters indicates a moderate level of demand, but without specific DOM data, it's challenging to assess how quickly properties are rented out. If the DOM is low, it signifies strong demand, making ZIP 35771 a good choice for Section 8 investments. Conversely, high DOM values would suggest a weaker rental market.

• If the FMR of $780 covers the debt service: Yes, proceed to evaluate the next criteria. This means the property can be rented out at a rate that meets the financial obligations.
• If the market rent of $724 is significantly below the FMR: It depends. While the current market rent is lower, the proximity to the FMR suggests potential for profitability. However, landlords should consider the long-term stability of rent levels and the possibility of market fluctuations.
• If rental demand is strong (low DOM): Yes, the combination of moderate demand and a slight premium in FMR over market rent makes ZIP 35771 a suitable location for Section 8 investments. Strong demand ensures that units will be occupied, which is crucial for maintaining steady income.
• If rental demand is weak (high DOM): No, despite the FMR and market rent figures, a weak rental market will lead to vacancies, reducing the effectiveness of Section 8 as a reliable source of income.

In summary, for ZIP 35771, a landlord should first ensure that the FMR covers the debt service. Next, they should consider the slight gap between FMR and market rent, which leans towards viability but requires caution. Finally, the strength of the rental demand, particularly the DOM, will be the deciding factor. Low DOM values indicate a robust market, supporting a positive recommendation for Section 8 investments in this area.

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.