Location: Marshall County, 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 | $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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,530 | $245,824 | 0.62% | D |
U.S. Census Bureau data (2024)
The market dynamics in ZIP code 35776 reveal a landscape where demand is likely outpacing supply, despite the absence of historical time-series data. This inference is drawn from the disparity between the Fair Market Rent (FMR) at $930 for the fiscal year 2024 and the reported market rent of $598 based on Census ACS data. The higher FMR suggests that the federal government recognizes a need for greater rental support, indicating potential upward pressure on rents.
A median home value of $195,492 points towards an area that is accessible to a broad range of buyers, which can attract both first-time homeowners and investors looking for affordable properties. However, the relatively low renter share of 10.9% suggests that a majority of residents prefer homeownership over renting. This preference could translate into sustained demand for purchasing homes rather than renting them, which might limit the availability of rental properties and increase competition among renters.
The lack of specific data regarding the percentage of price cuts and days on market (DOM) means we cannot precisely quantify the speed at which properties are selling or being rented. Nonetheless, the overall picture suggests a market where rental properties are valued and sought after, given the gap between FMR and market rent. This gap could be indicative of landlords maintaining competitive pricing to attract tenants or a reflection of the broader economic conditions influencing the local housing market.
In summary, ZIP 35776 appears to be a market where homeownership is favored, yet there remains a significant and possibly growing demand for rental properties. Landlords and small-portfolio investors should consider the potential for increasing rental rates, driven by the higher FMR, while also recognizing the importance of maintaining attractive pricing to compete effectively in the local rental market.
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.