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 | $980 |
| 1 Bedroom | $1,050 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,440 | $236,485 | 0.61% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 35133 operate under specific parameters that landlords need to understand to manage their expectations regarding rental income. For a two-bedroom apartment, the SAFMR (Small Area Fair Market Rent) is set at $1050 per month for the fiscal year 2024. This SAFMR is established specifically for this ZIP code, reflecting localized housing costs rather than broader metro or county averages.
To break down the actual payment process, the Section 8 voucher program reimburses landlords based on the total rent minus the tenant's portion, which is typically 30% of their adjusted income. For example, if a tenant's monthly adjusted income is $1500, they would be expected to pay $450 towards rent ($1500 x 0.30). Therefore, the government would cover the remaining $600 of the $1050 rent, assuming the tenant’s income does not exceed the limit for the area.
In addition to the base rent, the voucher also includes an allowance for utilities. This allowance can vary but generally aims to cover the average cost of utilities in the area. However, without specific data for ZIP 35133, we cannot provide an exact figure for utility allowances. Landlords should verify these details directly with the local housing authority to ensure accurate calculations.
Given the SAFMR of $1050 and the typical tenant contribution of 30%, the reimbursement gap or surplus will depend on the actual market rent for the area. Since the local market rent is currently unreported (N/A), it is impossible to definitively state whether there is a surplus or a gap. However, if the market rent were higher than $1050, landlords would face a shortfall and would have to decide whether to accept the lower reimbursement or seek other tenants who can pay the full market rate.
Conversely, if the market rent is below $1050, landlords would benefit from a surplus, receiving more than the standard market rate. To make informed decisions, landlords must consider the SAFMR in relation to the local market conditions and the potential for receiving full rent versus participating in the Section 8 program.
Landlords in ZIP 35133 should regularly consult the local housing authority and monitor changes in the SAFMR and market rent to adjust their strategies accordingly. The SAFMR is a fixed benchmark, but market conditions can fluctuate, affecting the overall financial viability of renting to Section 8 participants.
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.