FY2027 Small Area FMR · Muscle Shoals, AL

ZIP 35661 Fair Market Rent & Payment Standards

HUD's FY2027 Small Area Fair Market Rent for a two-bedroom home in ZIP code 35661 (Muscle Shoals, AL) is $1,240 a month, up 6.0% from FY2026. That is 14% above the Florence-Muscle Shoals, AL area-wide FMR of $1,085.

2-bedroom SAFMR$1,240per month ▲ 6.0%

Area-wide 2 BR FMR$1,085Florence-Muscle Shoals, AL

Rank in the area2ndof 22 ZIP codes

Payment standard range, 2 bedrooms

90% of SAFMR$1,116

2 BR Small Area FMR$1,240

110% of SAFMR$1,364

Housing agencies may set voucher payment standards anywhere from 90% to 110% of the FMR without asking HUD.

Studio$870▲ 6.1%

1 BR$950▲ 4.4%

2 BR$1,240▲ 6.0%

3 BR$1,540▲ 6.2%

4 BR$1,630▼ 1.2%

FY2027 FY2026

Where 35661 sits in the Florence-Muscle Shoals, AL area

Of the 22 ZIP codes HUD lists for the area, 35661 has the 2nd highest two-bedroom Small Area FMR. Florence-Muscle Shoals, AL is not on HUD's list of mandatory Small Area FMR areas, so voucher payment standards here are normally based on the area-wide FMR of $1,085 for two bedrooms; an agency that opts in to Small Area FMRs would use $1,240 for this ZIP code instead.

All unit sizes

Monthly gross rent including utilities
Unit	FY2027 SAFMR	Payment standard range	Area-wide FMR	FY2026 SAFMR
Studio	$870	$783 – $957	$760	$820
1 bedroom	$950	$855 – $1,045	$834	$910
2 bedrooms	$1,240	$1,116 – $1,364	$1,085	$1,170
3 bedrooms	$1,540	$1,386 – $1,694	$1,348	$1,450
4 bedrooms	$1,630	$1,467 – $1,793	$1,426	$1,650

A household renting a two-bedroom home at the Small Area FMR of $1,240 needs about $49,600 a year to keep housing costs at 30% of income. The area median family income is $95,900 and the 80% low-income limit for four people is $72,450. ZIP code 35661 lies mainly in Colbert County. See the Florence-Muscle Shoals, AL metro page for the full income limits table and the household check.

Nearby ZIP codes

ZIP	Place	Distance	2 BR SAFMR
35630	Florence	6.7 mi	$1,130
35646	Leighton	6.8 mi	$990
35660	Sheffield	7.9 mi	$1,090
35645	Killen	9.9 mi	$1,260
35632	Florence	10.8 mi	$1,130
35634	Florence	11.0 mi	$1,170

Questions

What is the Fair Market Rent for ZIP code 35661?

HUD's FY2027 Small Area Fair Market Rents for 35661 are $870 (studio), $950 (1 BR), $1,240 (2 BR), $1,540 (3 BR) and $1,630 (4 BR) a month.

What is the Section 8 payment standard in 35661?

Housing agencies set payment standards between 90% and 110% of the applicable FMR without HUD approval. For a two-bedroom unit in 35661 that range is $1,116 to $1,364 if the agency uses Small Area FMRs. Ask your housing agency for its actual payment standard.

Which income limits apply in 35661?

The FY2026 income limits of the Florence-Muscle Shoals, AL area apply: median family income $95,900, low-income (80%) limit $72,450 for a family of four.