Section 8 Fair Market Rent (FMR) for ZIP 35126 - 2027

Location: Birmingham-Hoover, AL | Metro: Birmingham-Hoover, AL HUD Metro FMR Area

Investment Score for ZIP 35126

Monthly Rent (2BR)

$1,550

Median Price (2BR)

$132,370

1% Rule

1.17%

Annual Yield

14.05%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,330
1 Bedroom	$1,420
2 Bedrooms	$1,550
3 Bedrooms	$1,950
4 Bedrooms	$2,190
5 Bedrooms	$2,540
6 Bedrooms	$2,845
7 Bedrooms	$3,073
8 Bedrooms	$3,227

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,550	$132,370	1.17%	B
3BR	$1,950	$215,344	0.91%	C
4BR	$2,190	$303,481	0.72%	D
5BR	$2,540	$377,043	0.67%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

22,599

Median Household Income

$83,732

Housing Units

8,691

Renter Percentage

14.6%

Occupancy Rate

89.8%

Renter Occupied

1,136

The ZIP code 35126, located in Pinson, Alabama, is a suburban area characterized by its modest-sized homes and close-knit community. This region offers a mix of rental properties and homeownership opportunities, making it a viable option for real estate investors looking to diversify their portfolios.

The Fair Market Rent (FMR) for a two-bedroom apartment in ZIP 35126 for fiscal year 2024 is set at $1250, indicating the government's benchmark for affordable housing in the area.
The market rent, as measured by Zillow's ZORI (Zestimate of Rent Index), stands at $1,535, suggesting that private rentals are priced above the government's affordability standards but remain competitive within the local market.
The median home value in Pinson is $225,729, reflecting a relatively stable housing market where property values are neither excessively high nor low.
Renters make up 14.6% of the population, showing a smaller demand for rental properties compared to homeownership, which could indicate a more challenging market for landlords.
The days on market (DOM) for properties in this area average 51 days, implying a moderate pace of sales activity and suggesting that properties sell within a reasonable timeframe without lingering too long.
The median household income in ZIP 35126 is $83,732, providing insight into the financial capacity of potential tenants and buyers, and supporting the idea that the area can sustain modest rental rates and home values.

Synthesizing these points, investors considering entering the market in ZIP 35126 should be aware of the government's affordable housing benchmarks and the slightly higher market rents. With a median home value of $225,729, the area presents a balanced investment opportunity, though the relatively low renter share might necessitate a focus on attracting and retaining tenants. The median income supports the viability of current rental rates, and the days on market suggest that while the market is not overly fast-paced, it remains active enough to ensure timely property turnover. Overall, the market offers a stable environment for both rental and homeowner investments, with careful attention needed to manage rental pricing and tenant acquisition strategies.

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.