Location: Jackson 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 | $730 |
| 1 Bedroom | $730 |
| 2 Bedrooms | $960 |
| 3 Bedrooms | $1,200 |
| 4 Bedrooms | $1,600 |
| 5 Bedrooms | $1,856 |
| 6 Bedrooms | $2,079 |
| 7 Bedrooms | $2,245 |
| 8 Bedrooms | $2,357 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,200 | $219,114 | 0.55% | F |
U.S. Census Bureau data (2024)
201,621 is the median home value in ZIP code 35971, which provides a solid baseline for property investments. However, the area's 25.3% renter share indicates a significant portion of residents prefer leasing over purchasing, suggesting strong demand for rental properties. The Fair Market Rent (FMR) for the metro area in fiscal year 2026 is set at $800, while the actual market rent, as per Census ACS data, stands at $732. This discrepancy highlights an opportunity for landlords to potentially command higher rents through efficient property management and maintenance. Given the median income of $58,528, tenants may find it challenging to save for a down payment, further bolstering the rental market. Unfortunately, the lack of specific data on days on market (DOM) and the percentage of price-cut shares makes it difficult to assess the speed and frequency of property transactions. Nevertheless, the combination of a high renter share and a favorable gap between FMR and market rent suggests a promising investment climate. For landlords and small-portfolio investors, the area's economic indicators support the viability of Section 8 housing.
35971's economic profile paints a picture where rental properties can thrive. With the median home value at $201,621, owning a home might be out of reach for many earning the median income of $58,528. The 25.3% renter share underscores the importance of rental units in meeting housing needs. Although the specific days on market and price-cut share percentages are unavailable, the gap between the $800 FMR and the $732 market rent suggests potential for landlords to adjust their pricing strategies. This environment, characterized by a substantial need for affordable housing, makes Section 8 a viable option for securing steady, government-backed rental income.
58,528 is the median income in 35971, indicating that the majority of residents earn less than the typical FMR and market rent levels. Given the $800 FMR and $732 market rent, many residents will likely require assistance to afford decent housing. The area's median home value of $201,621 further emphasizes the financial barrier to homeownership, making rentals essential. With a 25.3% renter share, there is a clear demand for affordable housing options. While data on days on market and price-cut shares is missing, the overall economic context supports the notion that Section 8 participation could provide a reliable source of income for landlords and small-portfolio investors.
800 is the Fair Market Rent (FMR) for ZIP code 35971 in the upcoming fiscal year 2026, providing a benchmark for rental properties. In comparison, the $732 market rent observed in recent Census ACS data suggests a modest premium landlords can aim for. The median home value of $201,621 reflects the broader housing market's cost, but the median income of $58,528 reveals affordability challenges for many residents. With 25.3% of the population renting, there is a significant demand for rental units. Although specific data on days on market and price-cut shares is not available, the economic conditions point to the benefit of Section 8 participation for landlords seeking stable income sources.
Section 8 verdict: A solid investment choice given the economic indicators and tenant demand in ZIP 35971.
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.