Location: Birmingham-Hoover, AL | Metro: Birmingham-Hoover, AL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,070 |
| 1 Bedroom | $1,140 |
| 2 Bedrooms | $1,250 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 35036 are governed by the SAFMR (Small Area Fair Market Rent) which is specifically tailored for this region. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $1040. This figure represents the maximum amount that the Housing Choice Voucher Program will pay to landlords on behalf of eligible tenants.
To understand how much you can expect to receive from a voucher, it's important to break down the components. The tenant is required to contribute 30% of their adjusted income towards rent. This contribution, known as the tenant portion, is paid directly to the landlord along with the voucher payment. Additionally, there are utility allowances which vary but are typically around $300 per month for a two-bedroom unit. These allowances cover the cost of utilities such as electricity, water, and gas.
Once these factors are considered, landlords should calculate the total expected monthly rent. For instance, if a tenant's adjusted income is $1000, they would contribute 30%, or $300, towards the rent. Adding the voucher payment of $1040, the total rent would be $1340. However, this does not account for any utility allowances that might apply, bringing the total closer to $1640. It's crucial to note that the SAFMR of $1040 is the cap for the voucher payment, meaning that even if your market rent is higher, the voucher program will not exceed this amount.
In ZIP 35036, the local market rent for a two-bedroom apartment is currently unavailable. This makes it challenging to determine whether the SAFMR aligns with the actual market conditions. However, based on the SAFMR alone, landlords need to ensure their properties are priced competitively to attract tenants who might use vouchers.
The typical reimbursement gap or surplus in ZIP 35036 for a two-bedroom apartment can only be determined if we know the local market rent. Given the lack of data on market rent, it's unclear whether landlords will face a shortfall or have a surplus when accepting Section 8 vouchers. If the local market rent is higher than $1040, landlords may experience a gap where the voucher plus tenant contribution do not cover the full market rent. Conversely, if the market rent is lower, landlords could see a surplus.
To conclude, the SAFMR of $1040 for a two-bedroom apartment in ZIP 35036 is a fixed rate set by the government. Landlords must consider this rate alongside the tenant's contribution and any applicable utility allowances when determining the overall financial impact of renting to Section 8 tenants. Without specific market rent data, the exact gap or surplus cannot be quantified.
Data Sources: FMR data from HUD (2027). 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.