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 | $790 |
| 1 Bedroom | $850 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,160 |
| 4 Bedrooms | $1,300 |
| 5 Bedrooms | $1,508 |
| 6 Bedrooms | $1,689 |
| 7 Bedrooms | $1,824 |
| 8 Bedrooms | $1,915 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,160 | $206,216 | 0.56% | F |
U.S. Census Bureau data (2024)
The ZIP code 35131, located in Ragland, Alabama, has a moderate rental market presence with 24.0% of residents being renters. The median household income is $43,738, and the typical market rent of $771 consumes about 17.6% of the local income. This is calculated by dividing the market rent by the annual income and multiplying by 100.
Compared to the Fair Market Rent (FMR) of $970 for FY 2024, the actual rents are below the FMR. This indicates potential opportunities for landlords to adjust their rental rates upwards while still remaining competitive and attractive to tenants who might use Section 8 vouchers.
Recent trends and specifics regarding Section 8 usage in ZIP 35131 show that there is a growing interest in affordable housing options. The demographic data reveals a population density of 36 people per square mile, which is very low, suggesting a spread-out community with varying needs for housing assistance.
Average Adjusted Gross Income (AGI) for the 2020 tax year, filed in 2021, was $45,170, slightly higher than the median household income. This aligns with the notion that many residents in this area could benefit from Section 8 vouchers, given the relatively high cost of living compared to their income levels.
The kind of tenant profile a landlord in ZIP 35131 should expect includes individuals and families who depend on government assistance due to lower income levels. These tenants would likely have Section 8 housing vouchers to cover a portion of their rent, making it easier for them to afford living in an area where typical rents are below the FMR. Landlords should prepare for a mix of tenants who require financial aid to meet their housing needs, ensuring compliance with HUD regulations and maintaining quality standards to attract and retain these tenants.
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.