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 | $1,140 |
| 1 Bedroom | $1,200 |
| 2 Bedrooms | $1,370 |
| 3 Bedrooms | $1,770 |
| 4 Bedrooms | $2,290 |
| 5 Bedrooms | $2,656 |
| 6 Bedrooms | $2,975 |
| 7 Bedrooms | $3,213 |
| 8 Bedrooms | $3,374 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,770 | $261,293 | 0.68% | D |
| 4BR | $2,290 | $335,166 | 0.68% | D |
U.S. Census Bureau data (2024)
The analysis of ZIP code 35773 within the Huntsville, AL MSA reveals a mixed picture for landlords and small-portfolio investors.
The rent math does not favorably align with the Fair Market Rent (FMR) set at $1230 for fiscal year 2024. In comparison, the market rent as per the Census ACS is $1,187. This suggests that landlords aiming to meet the FMR might face challenges in attracting tenants willing to pay above the market rate.
Regarding acquisition affordability, the median home value stands at $269,650. However, the lack of data on days on market (DOM) and the fact that only 0.2% of homes experience price cuts indicate that the housing market is relatively stable. Landlords should be cautious about overpaying for properties, given the median value and the limited number of sales transactions that provide insight into the local real estate dynamics.
Tenant demand is somewhat limited in ZIP 35773. With a total population of 14,606, only 11.3% are renters. This low percentage of renters implies that the pool of potential tenants is smaller, which could make it harder to find suitable occupants for rental properties.
Verdict: The investment environment in ZIP 35773 presents both opportunities and challenges. While the market stability offers a secure foundation for acquisitions, the mismatch between FMR and actual market rents and the modest tenant demand suggest that landlords must carefully select properties and price their rentals competitively to succeed. A strategic approach focusing on quality, well-priced units is essential to attract and retain tenants 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.