Location: Birmingham-Hoover, 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 | $1,490 |
| 1 Bedroom | $1,600 |
| 2 Bedrooms | $1,740 |
| 3 Bedrooms | $2,190 |
| 4 Bedrooms | $2,460 |
| 5 Bedrooms | $2,854 |
| 6 Bedrooms | $3,196 |
| 7 Bedrooms | $3,452 |
| 8 Bedrooms | $3,625 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,740 | $195,436 | 0.89% | C |
| 3BR | $2,190 | $256,996 | 0.85% | C |
| 4BR | $2,460 | $342,613 | 0.72% | D |
U.S. Census Bureau data (2024)
ZIP code 35004, located in Moody, Alabama, stands out in Saint Clair County with a population of 12,155 residents. Notably, 26.4% of these residents are renters, indicating a modest but significant rental market presence. The median income in this area is $87,652, which is relatively high compared to many other ZIP codes in the region. However, the median home value of $259,168 suggests that homeownership is somewhat costly, potentially limiting accessibility for lower-income families.
The economic dynamics of the rental market in ZIP 35004 are further highlighted by the disparity between the Fair Market Rent (FMR) and the Zillow Observed Rental Index (ZORI). For fiscal year 2024, the FMR is set at $1,290, while the market rate, as indicated by ZORI, is $1,838. This gap means that landlords can expect to receive higher rents from tenants who do not rely on Section 8 vouchers. Conversely, tenants using vouchers will find it challenging to secure housing within the ZIP code due to the limited availability of units priced below the market rate.
Given the data signature of ZIP 35004, it reads as stable. The median income and home values suggest a community where economic conditions are consistent, and there is a balanced mix of homeowners and renters. Despite the cost of living being somewhat high, the local economy supports a reasonable standard of living for most residents. This stability provides a predictable environment for landlords and small-portfolio investors, allowing them to make informed decisions based on reliable economic indicators.
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.