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 | $1,080 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,670 |
| 4 Bedrooms | $2,160 |
| 5 Bedrooms | $2,506 |
| 6 Bedrooms | $2,807 |
| 7 Bedrooms | $3,032 |
| 8 Bedrooms | $3,184 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,130 | $107,685 | 1.05% | B |
| 2BR | $1,290 | $181,448 | 0.71% | D |
| 3BR | $1,670 | $333,567 | 0.5% | F |
| 4BR | $2,160 | $440,435 | 0.49% | F |
| 5BR | $2,506 | $607,518 | 0.41% | F |
U.S. Census Bureau data (2024)
1340 is the Fair Market Rent (FMR) for ZIP 35802 in Huntsville, AL, for fiscal year 2024, indicating the maximum amount a landlord can charge for a Section 8 rental unit. However, the Zillow Observed Rent Index (ZORI), at 1236, suggests that the actual market rent is slightly below the FMR, which could mean opportunities for landlords who can offer competitive pricing. The median home value in this area stands at 355,919, reflecting a stable housing market that could support steady rental demand. With 46.0% of the population being renters, there's a significant portion of the community looking for affordable housing options, making ZIP 35802 an attractive investment for those interested in the rental market. The median income of 76,324 provides insight into the financial capability of potential tenants, ensuring a pool of individuals capable of meeting rental obligations. A 30-day Days on Market (DOM) average shows that properties are moving relatively quickly once listed, suggesting strong interest and activity in the rental market. Furthermore, a 0.2% price-cut share indicates that landlords rarely need to reduce their asking price to attract tenants, a sign of a healthy and robust rental environment. Given these factors, landlords and small-portfolio investors in ZIP 35802 should find the Section 8 program a viable option for securing long-term, stable tenancies without sacrificing profitability.
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.