Location: Marshall County, AL | Metro: DeKalb County, AL
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 | $740 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $980 |
| 3 Bedrooms | $1,240 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,240 | $219,853 | 0.56% | F |
U.S. Census Bureau data (2024)
850 FMR (metro FY 2026) highlights the Fair Market Rent set for ZIP code 35962, which stands above the $760 market rent observed in recent Census ACS data. This indicates a potential opportunity for landlords to increase rental rates without significantly deterring demand. Meanwhile, the $193,714 median home value reflects a stable housing market, suitable for both homeowners and investors seeking property appreciation. With a 20.5% renter share, it's clear that a substantial portion of the population relies on renting, making rental properties a valuable investment. The median income of $60,392 suggests that residents have the financial capacity to support slightly higher rents, aligning well with the FMR. The lack of available day DOM (Days on Market) data implies that properties in this area are either quickly rented or sold, indicating strong local demand. Lastly, the 0.2% price-cut share reveals that very few properties need to be discounted to attract tenants, further supporting the idea that this is a robust rental market. For landlords and small-portfolio investors considering Section 8 participation, the data points to a favorable environment where fair market rents are higher than current market rates, ensuring competitive compensation.
The Section 8 program offers a guaranteed income stream that matches the 850 FMR, making it an attractive option for those who might otherwise struggle to find tenants willing to pay above the $760 market rent. Given the strong tenant demand and limited need for price reductions, participating in Section 8 can provide a steady and reliable income source, especially since the 0.2% price-cut share indicates that properties rarely require discounts. In conclusion, the data from ZIP 35962 supports a positive Section 8 verdict for landlords and small-portfolio investors looking to secure their rental investments.
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.