Section 8 Fair Market Rent (FMR) for ZIP 35042 - 2027

Location: Perry County, AL | Metro: Birmingham-Hoover, AL HUD Metro FMR Area

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$790
1 Bedroom	$840
2 Bedrooms	$920
3 Bedrooms	$1,160
4 Bedrooms	$1,300
5 Bedrooms	$1,508
6 Bedrooms	$1,689
7 Bedrooms	$1,824
8 Bedrooms	$1,915

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

5,924

Median Household Income

$46,509

Housing Units

2,756

Renter Percentage

25.2%

Occupancy Rate

86.0%

Renter Occupied

598

The ZIP code 35042, located in Alabama, offers a unique blend of suburban living and urban amenities, making it an attractive location for both renters and homeowners. The area has seen steady growth in recent years, driven by its proximity to economic hubs and a strong local job market.

Fair Market Rent (FMR) for the area is $970 per month as of fiscal year 2024. This figure represents the maximum amount that low-income families should pay for housing under the Section 8 program, indicating a moderate cost of living in the region.
The average market rent is $705 per month according to the latest Census ACS data. This suggests that the actual rental costs are below the FMR, offering landlords a competitive advantage in attracting tenants.
The median home value stands at $211,829. This reflects a relatively affordable housing market, which can be beneficial for first-time buyers and investors looking to purchase properties at a lower entry price.
Renters make up 25.2% of the housing market in this ZIP code. This indicates a significant demand for rental properties, suggesting opportunities for landlords and investors to capitalize on the rental market.
The median income in the area is $46,509. This provides insight into the financial capacity of residents, helping investors to understand the potential rental market and the affordability of homes for sale.

Synthesizing these points, ZIP 35042 presents a balanced opportunity for real estate investment. With rental prices below the Fair Market Rent, there's room for landlords to increase rents slightly while remaining competitive. The median home value indicates that property acquisition costs are manageable, and the substantial renter population ensures a stable demand for rental units. However, the median income suggests that the target demographic may lean towards more modestly priced properties, emphasizing the importance of maintaining affordability in both rental and purchase options. Overall, the area offers a promising environment for small-portfolio investors and landlords who can adapt to the local market dynamics.

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.