Location: Walker County, 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 | $740 |
| 1 Bedroom | $810 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,200 |
| 4 Bedrooms | $1,380 |
| 5 Bedrooms | $1,601 |
| 6 Bedrooms | $1,793 |
| 7 Bedrooms | $1,936 |
| 8 Bedrooms | $2,033 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $920 | $125,299 | 0.73% | D |
| 3BR | $1,200 | $215,050 | 0.56% | F |
| 4BR | $1,380 | $325,918 | 0.42% | F |
U.S. Census Bureau data (2024)
The ZIP code 35062 in Jefferson County, Alabama, stands out due to its unique demographic and economic characteristics. With a population of 8,864 residents, it has a relatively low rental rate of 9.7%, indicating that most homeowners in this area own their properties outright. The median household income is $73,393, which is above the national average, and the median home value is $181,109, reflecting a stable housing market.
When it comes to Section 8 vouchers, the Fair Market Rent (FMR) for ZIP 35062 is set at $1,010 for the fiscal year 2024. This is notably higher than the market rent, which is estimated at $771 according to the Census Bureau's American Community Survey. This discrepancy suggests that landlords who accept Section 8 vouchers can expect to receive a rent amount that exceeds the typical market rate, making it financially beneficial to participate in the program. However, the lower rental rate in the area might indicate that there are fewer tenants seeking rentals, which could affect the demand for subsidized housing.
The data signature for ZIP 35062 reads as "stable." The high median income and median home values suggest a solid economic foundation where homeownership is prevalent. While the rental market is smaller, the higher FMR compared to the market rent provides an incentive for landlords to consider accepting Section 8 vouchers. This combination of factors indicates a community that is unlikely to experience significant transitional changes in the near future, making it a reliable investment environment for those interested in real estate opportunities, including those involving Section 8 tenants.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.