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 | $1,160 |
| 1 Bedroom | $1,240 |
| 2 Bedrooms | $1,350 |
| 3 Bedrooms | $1,700 |
| 4 Bedrooms | $1,910 |
| 5 Bedrooms | $2,216 |
| 6 Bedrooms | $2,482 |
| 7 Bedrooms | $2,681 |
| 8 Bedrooms | $2,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,350 | $170,160 | 0.79% | D |
| 3BR | $1,700 | $254,689 | 0.67% | D |
| 4BR | $1,910 | $336,069 | 0.57% | F |
U.S. Census Bureau data (2024)
The ZIP code 35117, located in Mount Olive, Alabama, houses a population of 5,606 residents. Only 10.0% of these residents are renters, indicating that this area is predominantly dominated by homeowners rather than renters. This characteristic suggests that the demand for Section 8 housing vouchers in this region is relatively low compared to areas with a higher percentage of renters.
The median household income in this ZIP code is $92,730, which provides a benchmark for evaluating the affordability of housing. The typical market rent of $1,404 represents approximately 17.3% of the median income. This means that for a family to afford the average rent, they would need to allocate nearly one-fifth of their annual income towards housing expenses, which can be considered a significant portion.
Comparing the market rent to the Fair Market Rent (FMR) of $970 for FY 2024, it's evident that the actual rent in ZIP 35117 exceeds the FMR by about $434. This discrepancy implies that landlords may struggle to find tenants willing to pay the full market rent if they are relying solely on Section 8 vouchers, which typically cover up to the FMR.
In terms of the tenant profile, landlords in this area should expect a mix of tenants who either have additional income sources beyond just the voucher amount or are willing to contribute a portion of their own income to cover the difference between the FMR and the market rent. Given the high median income and the relatively low percentage of renters, it is likely that many tenants will also have to supplement the voucher with personal funds to meet the rental costs.
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.