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 | $1,200 |
| 1 Bedroom | $1,290 |
| 2 Bedrooms | $1,400 |
| 3 Bedrooms | $1,760 |
| 4 Bedrooms | $1,980 |
| 5 Bedrooms | $2,297 |
| 6 Bedrooms | $2,573 |
| 7 Bedrooms | $2,779 |
| 8 Bedrooms | $2,918 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,400 | $172,362 | 0.81% | C |
| 3BR | $1,760 | $234,570 | 0.75% | D |
| 4BR | $1,980 | $314,114 | 0.63% | D |
U.S. Census Bureau data (2024)
The ZIP code 35068, encompassing Fultondale, AL, presents a market characterized by modest equilibrium between supply and demand. The Fair Market Rent (FMR) for the area stands at $1,330 for the fiscal year 2024, while the Zillow Observed Rent Index (ZORI) indicates a slightly higher market rent of $1,398. This suggests that the market rent exceeds the government's benchmark, indicating a slight bias towards demand, though the difference is minimal.
The price-cut share of 0.2% implies that very few listings are being discounted, which typically signals a market where sellers are confident in their asking prices. However, the absence of days on market (DOM) data makes it challenging to assess the speed at which properties are selling, leaving some ambiguity regarding the immediate supply-demand balance.
The median home value of $237,272 provides a baseline for understanding the financial commitment required for homeownership in the area. It also highlights the affordability of the market, potentially attracting both buyers and renters who seek affordable housing options.
A significant 32.4% of residents in ZIP 35068 are renters, indicating a notable presence of rental properties. This high renter share suggests ongoing long-term housing pressure, as a substantial portion of the population relies on rental units rather than owning homes. Over time, this can translate into sustained demand for rental properties, which is beneficial for landlords and small-portfolio investors looking to capitalize on steady rental income.
In summary, the dynamics of ZIP 35068 point toward a market that is slightly favoring demand over supply, particularly in the rental sector. Landlords and investors should take note of the high renter share, which points to a resilient rental market, and the relatively low price-cut share, indicating a seller-friendly environment. However, without historical data, the exact trajectory of these trends remains unclear, underscoring the importance of monitoring local real estate conditions closely.
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.