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 | $940 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,560 |
| 5 Bedrooms | $1,810 |
| 6 Bedrooms | $2,027 |
| 7 Bedrooms | $2,189 |
| 8 Bedrooms | $2,298 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,390 | $284,580 | 0.49% | F |
| 4BR | $1,560 | $344,572 | 0.45% | F |
U.S. Census Bureau data (2024)
The ZIP code 35091 encompasses a residential area with a total population of 3,802 individuals. Only 9.2% of the residents are renters, indicating that it is primarily a homeowner-dominated community. The median household income in this area stands at $100,375, reflecting a relatively affluent demographic. The median home value in ZIP 35091 is $304,747, suggesting that homeownership here is accessible to those with above-average earnings.
Moving into the realm of rental economics, the Fair Market Rent (FMR) for ZIP 35091 is set at $1,160 for the fiscal year 2024. This figure represents the benchmark for rental costs under the Section 8 program. In comparison, the actual market rent, as per the Census Bureau's American Community Survey (ACS), is slightly lower at $1,141. This close alignment between the FMR and market rent implies that the rental market in this ZIP code is well-regulated and closely matches the subsidies available through Section 8.
Given these economic conditions, ZIP 35091 would suit both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the stable rental market and the proximity of FMR to market rents mean that there is little risk in maintaining properties under Section 8 contracts. For value-add buyers, the potential exists to renovate older properties and command rents closer to the FMR, thereby benefiting from the higher subsidy levels while also appealing to the local demographic's preference for quality housing. However, the limited number of renters suggests that opportunities might be fewer compared to more densely populated areas.
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.