Location: Marshall 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 | $700 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $1,000 |
| 3 Bedrooms | $1,270 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,270 | $252,102 | 0.5% | F |
| 4BR | $1,430 | $330,998 | 0.43% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 35956 within the Marshall County, AL metro area reveals several key insights. The HUD Fair Market Rent (FMR) for FY 2024 is set at $920, which closely aligns with the Census ACS-reported market rent of $926. This means that voucher tenants will cashflow at FMR, making it a viable option for landlords and small-portfolio investors without requiring premium units to achieve positive cash flow.
To further understand the investment potential, consider the median home value in the area, which stands at $220,839. The rent-to-price ratio can be calculated by dividing the annual rent ($926 * 12 months) by the median home value. This results in a ratio of approximately 5%, indicating that rental income is relatively low compared to property values. However, this does not necessarily diminish the attractiveness of the area for investors, as it suggests a stable housing market where property values are unlikely to fluctuate drastically.
The dynamics between rent and buying do not significantly impact the decision-making process for investors in this region. The median Days on Market (DOM) is noted as N/A, suggesting that there might be limited data available on recent sales activity. Similarly, the price-cut share of 0.2% indicates that sellers are rarely forced to lower their asking prices, which is a sign of a robust seller's market.
The strongest investor angle in ZIP 35956 is likely to be stability. Given the close alignment between FMR and market rents, along with the moderate rent-to-price ratio, investors can expect consistent returns without the need for aggressive pricing strategies. This makes the area particularly appealing for those looking to build a long-term, low-risk portfolio.
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.