Location: Gadsden, AL | Metro: Anniston-Oxford, AL MSA
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 | $920 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,230 |
| 5 Bedrooms | $1,427 |
| 6 Bedrooms | $1,598 |
| 7 Bedrooms | $1,726 |
| 8 Bedrooms | $1,812 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,220 | $257,282 | 0.47% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 36271 operate under specific guidelines that affect both landlords and tenants. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) is set at $890 for fiscal year 2024. This figure is crucial because it represents the maximum amount that the housing authority will pay on behalf of a tenant with a voucher. However, it's important to understand that the actual rent paid can be less due to the tenant's portion and utility allowances.
The local market rent in ZIP 36271 is lower, running at $766 according to the Census ACS. This discrepancy between the SAFMR and the market rent can create a situation where landlords either receive more than the market rate or face a shortfall if they charge closer to the market rent.
When a tenant uses a Section 8 voucher, they typically pay 30% of their adjusted income toward rent. The remainder, up to the SAFMR, is covered by the housing authority. Utility allowances are also factored into the total reimbursement. These allowances vary but generally cover part of the tenant's electricity, gas, water, and sewer costs.
To illustrate, let's assume a tenant has an adjusted income that would require them to pay $267 towards the rent. The housing authority would then cover the difference between this amount and the SAFMR, which is $890. In this case, the housing authority would reimburse $623. If there are utility allowances, say $150, the total reimbursement to the landlord would be $773.
This example shows that even with a SAFMR of $890, the landlord might only receive $773 in total reimbursement when considering the tenant's payment and utility allowances. This leaves a gap of $117 compared to the SAFMR, or a surplus of $7 if the market rent is exactly $766.
In ZIP 36271, landlords should expect a typical reimbursement gap for a two-bedroom unit. Given the SAFMR of $890 and the local market rent of $766, the average gap is $124 per month. This means landlords could potentially earn less than the SAFMR but more than the market rent, depending on the tenant's income and utility usage.
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.