Location: DeKalb County, AL | Metro: Cherokee 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 | $710 |
| 1 Bedroom | $720 |
| 2 Bedrooms | $940 |
| 3 Bedrooms | $1,180 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $940 | $156,545 | 0.6% | D |
| 3BR | $1,180 | $234,733 | 0.5% | F |
| 4BR | $1,570 | $312,532 | 0.5% | F |
U.S. Census Bureau data (2024)
The classification of ZIP 35967, located in Fort Payne, Alabama, reveals a market that leans towards providing steady cash flow rather than high-yield/low-stability flipping opportunities. This conclusion is driven by the specific figures provided.
On the yield axis, the Federal Market Rent (FMR) for the $800 metro area in fiscal year 2026 stands at $684, which is notably lower than the median home value of $196,186. This indicates that while rental income can be expected, it is not exceptionally high relative to property values. The gap between the FMR and home value suggests that the market does not offer the kind of returns that would typically attract speculative investors looking for quick flips.
Moving to the stability axis, the market shows signs of reliability. With 27.6% of residents being renters, there is a substantial demand for rental properties. Although the number of days on the market (DOM) is not available, the median income figure of $47,051 provides insight into the financial capacity of potential tenants. This income level supports the idea that renters can consistently afford their monthly payments, contributing to a stable cash flow for landlords.
Combining these factors, ZIP 35967 presents an environment suitable for those seeking long-term, consistent rental income rather than short-term, high-risk investments. The relatively modest rental rates compared to home values suggest a balanced approach to real estate investment, where the focus should be on property management and maintaining a steady stream of income rather than on rapid appreciation or turnover.
Landlords and small-portfolio investors considering this ZIP code should expect to generate reliable cash flows based on the current rental market conditions and tenant income levels. However, they should also be prepared for moderate yields, as the rental income does not significantly outpace the typical home value in the area.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.