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 | $1,070 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,660 |
| 4 Bedrooms | $2,140 |
| 5 Bedrooms | $2,482 |
| 6 Bedrooms | $2,780 |
| 7 Bedrooms | $3,002 |
| 8 Bedrooms | $3,152 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,280 | $143,945 | 0.89% | C |
| 3BR | $1,660 | $269,218 | 0.62% | D |
| 4BR | $2,140 | $386,751 | 0.55% | F |
| 5BR | $2,482 | $494,805 | 0.5% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP code 35811 (Huntsville, AL, Huntsville, AL MSA metro) does not favor Section 8 participation. The Fair Market Rent (FMR) set at $1,180 for fiscal year 2024 is notably lower than the market rent, which stands at $1,374. This discrepancy means that landlords would receive less income through Section 8 vouchers compared to renting homes at market rates.
Acquisition in this area is relatively affordable for potential investors. With a median home value of $285,836, the market presents a reasonable entry point. The Days on Market (DOM) figure of 43 days indicates a brisk sales pace, suggesting that homes are moving quickly once listed. Additionally, the low price-cut share of 0.2% implies that sellers are generally achieving their asking prices without significant reductions, further supporting the idea that the market is favorable for acquiring properties at fair values.
Tenant demand in ZIP 35811 is strong, driven by a substantial population base of 31,080 residents. Of these, 22.4% are renters, indicating a steady pool of potential tenants. Given the sizeable rental market, landlords can expect consistent interest in their properties from both voucher holders and private renters.
In summary, while the rent math does not support participation in the Section 8 program due to the disparity between FMR and market rent, the acquisition costs remain manageable with a median home value of $285,836. The brisk sales pace and low price-cut share suggest that the market is stable and fair for buyers. Furthermore, the presence of a large rental market with a 22.4% renter share ensures robust tenant demand. Landlords should consider focusing on market rents rather than Section 8 vouchers to maximize their income potential 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.