Location: Birmingham-Hoover, AL | Metro: Birmingham-Hoover, AL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,080 |
| 1 Bedroom | $1,160 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $1,780 |
| 5 Bedrooms | $2,065 |
| 6 Bedrooms | $2,313 |
| 7 Bedrooms | $2,498 |
| 8 Bedrooms | $2,623 |
U.S. Census Bureau data (2024)
The analysis of ZIP 35097 within the Birmingham-Hoover, AL HUD Metro FMR Area reveals several key points that are essential for landlords and small-portfolio investors.
The rent math does not align favorably. The Fair Market Rent (FMR) set at $1330 for the fiscal year 2024 is higher than the actual market rent reported by the Census ACS, which stands at $1,121. This discrepancy suggests that landlords might struggle to find tenants willing to pay the higher FMR rate, especially if the local market is not supporting such prices.
Acquisition appears to be affordable based on the $222,870 median home value. However, the lack of data regarding days on market (DOM) and the percentage of homes that required a price cut indicates an incomplete picture. Landlords should proceed with caution, considering the limited availability of recent transaction data before making investment decisions.
Tenant demand is low in ZIP 35097. With a total population of 1,859, only 9.9% are renters. This small share of potential tenants could make it challenging to fill properties and maintain steady rental income.
In conclusion, while the median home value makes acquisition relatively affordable, the mismatch between the FMR and the actual market rent, coupled with the low tenant demand, poses significant challenges for landlords and small-portfolio investors. The data suggests that this area may not be ideal for rental investments due to the economic realities of the local housing market.
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.