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 | $740 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $950 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,220 | $395,053 | 0.31% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 35984 within the DeKalb County, AL metro area reveals several key insights for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the metro scope in fiscal year 2026 is set at $870. In contrast, the market rent based on Census ACS data stands at $358. This significant gap between the HUD FMR and the actual market rent means that voucher tenants can easily cashflow at the FMR level, providing a substantial buffer for landlords.
To further understand the investment potential, consider the median home value in ZIP 35984, which is $300,115. Using this figure, we can calculate the rent-to-price ratio. With a market rent of $358, the annual rent would be approximately $4,296, leading to a rent-to-price ratio of about 1.43%. This low ratio suggests that the area leans more towards buying rather than renting, given the relative affordability of homeownership compared to renting.
The dynamics of the rental market versus the homeownership market do not significantly impact the decision-making process for investors in this case. The median Days on Market (DOM) is listed as N/A, indicating either a lack of recent sales data or a very active market where homes sell quickly. Additionally, the price-cut share of 0.2% implies that sellers rarely need to reduce their asking prices, suggesting a strong and stable housing market.
In summary, landlords and small-portfolio investors in ZIP 35984 will find that voucher tenants can comfortably cashflow at the HUD FMR, offering a reliable source of income. The low rent-to-price ratio and the stability indicated by the price-cut share suggest that the strongest angle for investors in this area is stability, ensuring consistent returns without the volatility often associated with rapidly appreciating markets.
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.