Location: DeKalb County, 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 | $640 |
| 1 Bedroom | $780 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,170 |
| 4 Bedrooms | $1,320 |
| 5 Bedrooms | $1,531 |
| 6 Bedrooms | $1,715 |
| 7 Bedrooms | $1,852 |
| 8 Bedrooms | $1,945 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,170 | $187,815 | 0.62% | D |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 35954 in fiscal year 2024 is set at $860. This figure represents the maximum amount that a landlord can receive from the Housing Choice Voucher program, also known as Section 8, for renting a unit to a tenant who qualifies under this program. It's important to note that this is not the rent you will charge your tenants; it's the reimbursement limit from the government.
In comparison, the average rent for the area, according to the latest Census American Community Survey (ACS), is $727. This suggests that the FMR is higher than the typical market rate, potentially providing a better financial outcome for landlords participating in the Section 8 program.
With a 21.0% share of renters in the area, there is a steady demand for affordable housing options. This percentage indicates that over one-fifth of the households in ZIP 35954 are renters, making it a viable market for Section 8 properties. However, the acquisition cost of properties in this ZIP code is relatively high at an average of $143,439. This means that purchasing a property suitable for Section 8 tenants will require a significant initial investment.
To ensure success, landlords should verify that the property meets all the necessary criteria for participation in the Section 8 program. This includes ensuring the property is up to code and passes regular inspections. The FMR of $860 can help cover mortgage payments and maintenance costs, but landlords must also consider the ongoing administrative requirements and the potential for lower vacancy rates due to the high demand for affordable housing.
In summary, the FMR of $860 offers a clear reimbursement benchmark for landlords in ZIP 35954. While the average rent is lower at $727, the higher reimbursement rate can be beneficial. With a 21.0% renter share, there is a strong demand for rental units, but the initial investment of around $143,439 must be considered. Before committing to a Section 8 rental, landlords must confirm that their property complies with all program regulations and standards.
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.