Location: Marshall County, AL | Metro: Birmingham-Hoover, AL HUD Metro FMR Area
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 | $760 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $980 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,360 |
| 5 Bedrooms | $1,578 |
| 6 Bedrooms | $1,767 |
| 7 Bedrooms | $1,908 |
| 8 Bedrooms | $2,003 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,330 | $233,472 | 0.57% | F |
U.S. Census Bureau data (2024)
The ZIP code 35980 presents a dynamic rental market that is currently experiencing a balance between supply and demand. The Fair Market Rent (FMR) for the area, set at $970 for fiscal year 2024, is notably higher than the market rent reported by the Census American Community Survey (ACS) at $810. This discrepancy suggests that while the official guidelines indicate a higher rent threshold, actual market conditions are driving rents lower, possibly due to competition among landlords or a slight oversupply of rental units.
The median home value in ZIP 35980 stands at $219,955, which is a significant figure for understanding the overall economic health and desirability of the area. This value can influence both the rental market and the homeownership rate, as it affects the affordability of homes for potential buyers.
A key indicator of the ZIP's rental dynamics is the 25.1% renter share, which points to a notable portion of the population choosing to rent rather than buy. This high percentage of renters suggests long-term housing pressure, as a substantial number of residents are unable or unwilling to purchase homes. Such a scenario can create sustained demand for rental properties, benefiting landlords and small-portfolio investors who cater to this segment.
The lack of specific data on price-cut share and days on market (DOM) indicates that there might be limited fluctuations or changes in rental prices, suggesting a stable market. However, the gap between the FMR and the actual market rent implies that landlords may need to adjust their pricing strategies to remain competitive.
In summary, ZIP 35980 is a market characterized by a steady demand for rentals, driven by a significant renter population and influenced by the median home value. Landlords should monitor these trends closely, particularly the relationship between FMR and actual market rents, to ensure their pricing aligns with current market conditions and maximizes occupancy rates.
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.