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 | $910 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,330 | $289,919 | 0.46% | F |
| 4BR | $1,500 | $372,858 | 0.4% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP code 35051, located in the Birmingham-Hoover, AL HUD Metro FMR Area, is favorable for landlords. The Fair Market Rent (FMR) for FY 2024 is set at $970, which is slightly above the market rent of $929 according to the latest Census ACS data. This indicates that landlords can potentially charge rents that align closely with government guidelines, ensuring profitability while remaining competitive.
Acquisition costs in this area are manageable. With a median home value of $322,549, purchasing properties is within reach for many investors. The lack of data on days on market (DOM) and the low price-cut share of 0.1% suggest that homes are selling quickly and at or near asking prices, indicating a strong seller's market where homes retain their value well.
Tenant demand is evident in ZIP 35051. The total population stands at 9,818, with 21.1% of residents being renters. This means approximately 2,070 individuals are actively seeking rental housing, providing a steady pool of potential tenants for landlords. Given the slight premium landlords can command over the market rent, combined with the robust demand, it's likely that rental units will be filled promptly.
In summary, ZIP 35051 offers a balanced environment for real estate investment. The rent math supports profitability without excessive risk, acquisitions are affordable and likely to yield good returns, and there is sufficient tenant demand to ensure occupancy. For landlords and small-portfolio investors looking to enter or expand in this market, the conditions are ripe for success.
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.