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 | $1,280 |
| 1 Bedroom | $1,340 |
| 2 Bedrooms | $1,530 |
| 3 Bedrooms | $1,980 |
| 4 Bedrooms | $2,560 |
| 5 Bedrooms | $2,970 |
| 6 Bedrooms | $3,326 |
| 7 Bedrooms | $3,592 |
| 8 Bedrooms | $3,772 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,980 | $319,931 | 0.62% | D |
| 4BR | $2,560 | $434,759 | 0.59% | F |
| 5BR | $2,970 | $562,249 | 0.53% | F |
U.S. Census Bureau data (2024)
The ZIP code 35824 presents several challenges for landlords considering Section 8 investments. Tenant turnover is a significant risk, with market rents averaging $1,254 compared to the Federal Market Rent (FMR) of $1,340 for FY 2024. This disparity can lead to frequent changes in occupancy, making it difficult to maintain steady cash flow. Additionally, vacancy exposure is a concern due to the lack of available data on days on market (DOM), which suggests potential unpredictability in how quickly units can be filled once they become vacant.
The deferred maintenance exposure is another critical issue. With a typical home value of $385,778 and a median income of $103,619, residents may struggle to keep up with necessary repairs and upgrades, leading to potential property deterioration over time. This can result in higher costs for landlords who must cover these expenses to ensure their properties meet housing quality standards.
However, these risks are offset by the high renter share in the area, which stands at 44.5%. High renter density typically correlates with increased demand for rental properties, including those that accept Section 8 vouchers. This robust demand can help mitigate the impact of tenant turnover and vacancy exposure, ensuring a more consistent stream of rental income.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.