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 | $1,270 |
| 1 Bedroom | $1,360 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $1,860 |
| 4 Bedrooms | $2,090 |
| 5 Bedrooms | $2,424 |
| 6 Bedrooms | $2,715 |
| 7 Bedrooms | $2,932 |
| 8 Bedrooms | $3,079 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,480 | $246,460 | 0.6% | D |
| 3BR | $1,860 | $301,857 | 0.62% | D |
| 4BR | $2,090 | $419,677 | 0.5% | F |
| 5BR | $2,424 | $527,474 | 0.46% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 35128, which covers Pell City, AL, and Saint Clair County, are defined by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, set at $1180 for the fiscal year 2024. This SAFMR is specifically tailored for this ZIP code, reflecting the unique rental market conditions of the area.
In contrast, the local market rent for a similar two-bedroom unit, as measured by ZORI (Zillow Observed Rent Index), stands at $1,567. This discrepancy between the SAFMR and the local market rent is a critical consideration for landlords participating in the Section 8 program.
A Section 8 voucher does not cover the entire cost of rent. Instead, it reimburses the landlord for the difference between the tenant's contribution and the SAFMR. Here’s a breakdown:
The tenant is responsible for paying approximately 30% of their adjusted income towards rent. For simplicity, let’s assume the tenant’s portion is $354, which is roughly 30% of the SAFMR. This figure will vary based on the tenant's actual income.
Utility allowances are also factored into the equation. In ZIP 35128, the utility allowance for a two-bedroom apartment is $300 per month. This amount can be used by tenants to offset their utility costs.
The total reimbursement to the landlord from the housing authority would then be the sum of the tenant's portion and the utility allowance, totaling $1484 ($354 + $1180 + $300).
This means that if you rent your property for the local market rate of $1,567, you would receive $1484 from the Section 8 program, leaving a gap of $83 per month. Conversely, if you choose to rent your property at the SAFMR rate of $1180, the housing authority would cover the entire rent, and you would receive the full $1180 plus the utility allowance of $300, totaling $1480.
To summarize, landlords in ZIP 35128 should expect a reimbursement of around $1484 for a two-bedroom apartment when a tenant uses a Section 8 voucher. Given the local market rent of $1,567, there is a shortfall of $83 per month for landlords renting at the market rate. If you adjust your rent to align with the SAFMR, you would have a surplus of $296 per month compared to the local market rate.
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.