Location: DeKalb County, AL | Metro: DeKalb County, AL
| Unit Size | Monthly FMR |
|---|---|
| Studio | $700 |
| 1 Bedroom | $700 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,150 |
| 4 Bedrooms | $1,540 |
| 5 Bedrooms | $1,786 |
| 6 Bedrooms | $2,000 |
| 7 Bedrooms | $2,160 |
| 8 Bedrooms | $2,268 |
U.S. Census Bureau data (2024)
ZIP code 35963 is situated in a small, close-knit community with a total population of 1,398 residents. Approximately 23.7% of these residents are renters, indicating a modest demand for rental properties. The median household income in this area stands at $59,926, which is relatively stable but not exceptionally high. The median home value is $198,932, reflecting a moderate cost of living typical for suburban or rural settings.
The Federal Market Rent (FMR) for ZIP 35963 in the metro area for fiscal year 2026 is set at $810. This figure is notably higher than the current market rent of $668, as reported by the Census Bureau's American Community Survey (ACS). This discrepancy suggests that landlords who accept Section 8 vouchers can expect a premium over the local market rate, providing an attractive opportunity for those looking to maximize their rental income.
Given the economic landscape of ZIP 35963, it would be well-suited for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the higher FMR compared to the market rent means a reliable source of income without the need for extensive property management. On the other hand, value-add buyers could leverage the lower market rents to purchase properties at a discount and then benefit from the higher FMR once they secure Section 8 tenants.
Investors should note that the limited number of renters might pose challenges in filling vacancies, especially if they are targeting only Section 8 tenants. However, the potential for higher rents makes this ZIP code a viable option for those willing to engage in some level of tenant screening and property management.
In conclusion, ZIP 35963 offers a balanced environment where the benefits of Section 8 tenancy can outweigh the risks associated with a smaller rental market. Landlords and small-portfolio investors should carefully consider their investment strategy to align with the opportunities presented by this ZIP code's unique economic profile.
Data Sources: FMR data from HUD (2027). 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.