Location: Marshall County, AL | Metro: Birmingham-Hoover, AL HUD Metro FMR Area
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 | $730 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,250 |
| 4 Bedrooms | $1,310 |
| 5 Bedrooms | $1,520 |
| 6 Bedrooms | $1,702 |
| 7 Bedrooms | $1,838 |
| 8 Bedrooms | $1,930 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $920 | $151,532 | 0.61% | D |
| 3BR | $1,250 | $216,986 | 0.58% | F |
| 4BR | $1,310 | $281,964 | 0.46% | F |
U.S. Census Bureau data (2024)
The ZIP code 35957, located in Boaz, Alabama, presents an interesting scenario when analyzing the rental market from a renter's perspective. The median income for households in this area stands at $51,406 according to the latest Census American Community Survey (ACS) data. Given the market rate of $705 for rent, it becomes evident that a significant portion of the local population would struggle to afford these rents without financial assistance.
To put this into context, let's consider the voucher payment standard set by the Federal Housing Administration (FHA), which is $970 per month for ZIP code 35957 in fiscal year 2024. This amount is notably higher than the market rate, indicating that families receiving housing vouchers could potentially afford better quality or larger living spaces compared to those paying the market rate.
With 27.6% of the 16,737 residents being renters, there is a substantial segment of the population looking for affordable housing options. This creates a competitive environment for landlords, especially when considering the affordability gap between median income and market rent rates. The discrepancy means that many potential tenants will be seeking subsidized housing through programs like Section 8, which can offer a steady stream of rental income.
For landlords evaluating their strategy regarding voucher versus cash-paying tenants, the data suggests that accepting vouchers can be a viable option. While the voucher payment of $970 exceeds the market rate, it also ensures a reliable tenant who is less likely to face financial difficulties leading to non-payment or eviction. Additionally, the higher payment standard helps offset any administrative burdens associated with participating in the voucher program.
In summary, the affordability gap in ZIP 35957 highlights the importance of understanding the local economic landscape. Landlords who consider accepting Section 8 vouchers may find themselves in a stronger position, given the high voucher payment standard relative to both the median income and the market rate. This approach not only provides stability but also taps into a significant portion of the rental market.
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.