Location: DeKalb 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 | $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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,150 | $255,433 | 0.45% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 35968 stands at $43,539, while the market rate for rent is $698 per month according to the Census ACS data. This means that households in this area are already facing significant financial pressure just to meet their housing costs. The Family Monthly Income (FMI) required to afford the market rate without financial strain is typically considered to be three times the monthly rent, which would amount to $2,094 in this case. Given the median income, most residents would find it challenging to cover rent expenses comfortably.
When comparing the market rate to the voucher payment standard of Fair Market Rent (FMR) set at $780 for the metro area in fiscal year 2026, it becomes evident that the FMR is slightly higher than the current market rate. This suggests that voucher holders might have an easier time finding affordable housing options within this ZIP code, as their subsidy could cover a larger portion of the typical rent.
The population of ZIP 35968 is 4,763, with 15.3% being renters. This relatively low percentage of renters indicates a smaller pool of potential tenants, which could intensify competition among landlords. To attract and retain tenants, landlords must consider both the affordability gap and the preferences of the local renter demographic.
The takeaway for landlords is clear: focusing on voucher acceptance can provide a competitive edge in a market where many residents face tight budgets. While accepting vouchers might mean dealing with some administrative overhead, the guaranteed income and the ability to tap into a segment of the market that might otherwise struggle to pay market rates can stabilize occupancy and reduce vacancy periods. In contrast, relying solely on cash-paying tenants risks leaving units vacant due to the high cost of living relative to incomes 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.