Location: Gadsden, AL | Metro: Gadsden, 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 | $920 |
| 1 Bedroom | $1,120 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,670 |
| 4 Bedrooms | $1,890 |
| 5 Bedrooms | $2,192 |
| 6 Bedrooms | $2,455 |
| 7 Bedrooms | $2,651 |
| 8 Bedrooms | $2,784 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,670 | $275,488 | 0.61% | D |
| 4BR | $1,890 | $385,943 | 0.49% | F |
U.S. Census Bureau data (2024)
The ZIP code 35907 is primarily a homeowner-dominated area rather than a renter-heavy zone. With a population of 9,357, only 7.1% are renters, indicating that the majority of residents own their homes. This reduces the overall density of Section 8 voucher holders in the area. The median household income stands at $76,390, which is relatively high compared to national averages.
The market rent in this area is $1,184, representing approximately 15.5% of the median household income. This percentage suggests that typical rents are affordable for most households, even without assistance. However, the Fair Market Rent (FMR) for the area is set at $1,280 (for FY 2024), slightly higher than the current market rent. Landlords can use this FMR figure to adjust their rental pricing strategies accordingly.
A landlord in ZIP 35907 should anticipate a tenant pool that is moderately interested in Section 8 housing. Given the lower percentage of renters and the higher median income, tenants who utilize vouchers will likely be a smaller segment of the total rental market. These tenants will need to carefully manage their budgets to ensure that their rent, utilities, and other living expenses do not exceed the guidelines set forth by the Housing Choice Voucher program.
To summarize, while there is some demand for rental properties, it is not overwhelming due to the strong presence of homeownership. The typical rent of $1,184 is comfortably below the FMR threshold of $1,280, making it feasible for both voucher recipients and those paying out-of-pocket. Landlords should prepare for a mix of tenants, but they can reasonably expect that those relying on Section 8 vouchers will be financially disciplined and aware of the income-to-rent ratio constraints.
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.