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 | $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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,180 | $132,430 | 0.89% | C |
| 3BR | $1,530 | $194,635 | 0.79% | D |
| 4BR | $1,900 | $234,835 | 0.81% | C |
U.S. Census Bureau data (2024)
The market in ZIP 35816, located in Huntsville, Alabama, is characterized by a balance between affordability and demand. With a Fair Market Rent (FMR) of $1030 for the fiscal year 2024 and a market rent (ZORI) at $1,057, it's evident that rental properties are slightly above the fair market rate, indicating a healthy demand from tenants.
The price-cut share stands at 0.2%, which suggests that very few properties are being discounted, pointing towards a strong seller's market where homes are typically sold at or near their asking price. The median home value in the area is $161,139, making homeownership accessible to many residents. However, the lack of data on days on market (DOM) prevents a complete assessment of how quickly properties are selling, though the low price-cut share implies swift sales.
A significant 75.9% of the population in ZIP 35816 consists of renters, which is a high percentage and indicates substantial long-term housing pressure. This dynamic likely supports a robust rental market, as a majority of the residents prefer or require renting over buying. Landlords and small-portfolio investors can benefit from this trend, as it suggests a steady demand for rental properties in the area.
In summary, ZIP 35816 appears to be a market where demand for both rentals and home purchases is strong, but the high renter share points to an enduring need for rental properties. This makes it an attractive location for those looking to invest in real estate, particularly in rental properties, without the necessity of offering significant discounts to attract buyers or tenants.
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.