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 | $1,210 |
| 1 Bedroom | $1,270 |
| 2 Bedrooms | $1,450 |
| 3 Bedrooms | $1,880 |
| 4 Bedrooms | $2,420 |
| 5 Bedrooms | $2,807 |
| 6 Bedrooms | $3,144 |
| 7 Bedrooms | $3,396 |
| 8 Bedrooms | $3,566 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,450 | $253,837 | 0.57% | F |
| 3BR | $1,880 | $389,222 | 0.48% | F |
| 4BR | $2,420 | $606,875 | 0.4% | F |
| 5BR | $2,807 | $814,204 | 0.34% | F |
U.S. Census Bureau data (2024)
1360 is the Fair Market Rent (FMR) for ZIP 35801 in Huntsville, AL, for fiscal year 2024. 1349 represents the Zillow Observed Rent Index (ZORI), indicating the average market rent in the area. 394321 is the median home value in ZIP 35801, reflecting the overall property values. 32.1% is the proportion of renters in the area, showing a significant rental market presence. 105585 is the median income figure, which suggests the financial capability of the local residents. 50 days is the typical time it takes for a rental listing to find a tenant, known as the Days on Market (DOM). 0.3% is the share of listings that experience price cuts, indicating a relatively stable rental market.
In ZIP 35801, the Fair Market Rent stands at $1360, slightly above the ZORI of $1349, suggesting that landlords can charge competitive rents without exceeding reasonable limits. The median home value of $394,321 indicates a moderate housing market, providing opportunities for both homeownership and rental investments. With 32.1% of the population renting, there is a substantial demand for rental properties, making it a viable investment option for landlords. The median income of $105,585 supports the ability of tenants to afford rents within the FMR range, ensuring a steady stream of potential renters.
The 50-day DOM reflects an efficient rental market where properties are typically occupied quickly, reducing vacancy periods and increasing cash flow. The low 0.3% price-cut share demonstrates that landlords can maintain their asking prices, as the market is not overly saturated with discounted rentals. These factors combined make ZIP 35801 a favorable location for rental investments.
Based on these figures, the Section 8 program offers a viable option for landlords and small-portfolio investors in ZIP 35801, with fair rental rates and a strong tenant pool capable of meeting the financial requirements.
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.