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 | $1,200 |
| 1 Bedroom | $1,290 |
| 2 Bedrooms | $1,400 |
| 3 Bedrooms | $1,760 |
| 4 Bedrooms | $1,980 |
| 5 Bedrooms | $2,297 |
| 6 Bedrooms | $2,573 |
| 7 Bedrooms | $2,779 |
| 8 Bedrooms | $2,918 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,760 | $321,138 | 0.55% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 35135 in fiscal year 2024 is set at $1230. This figure represents the payment standard for landlords participating in the Section 8 Housing Choice Voucher program. It does not represent the total rent a tenant will pay; rather, it's the maximum amount the government will reimburse landlords for renting a unit to a voucher holder.
To put this into perspective, the average rent for the area, according to the Census Bureau's American Community Survey (ACS), is $1,268. This suggests that the FMR is slightly below the market rate, which could be beneficial for landlords who want to ensure they are not undercharging for their units. The difference between the two figures is minimal, indicating that landlords can expect to receive a fair reimbursement from the government.
In ZIP code 35135, approximately 20.2% of residents are renters. This indicates a steady demand for rental properties in the area. Landlords should consider this percentage when evaluating the potential occupancy rates for their properties. A higher renter share typically correlates with a greater likelihood of finding tenants who qualify for the Section 8 program.
The median home value in this ZIP code is around $305,037. For those looking to acquire a property for a Section 8 rental, this figure serves as a benchmark for the typical purchase price in the area. Given the FMR and the local average rent, landlords can reasonably expect to recoup a portion of their investment through monthly rental payments.
Before committing to a Section 8 rental, one crucial step is to verify the condition of the property against HUD's Housing Quality Standards (HQS). These standards ensure that the rental unit meets basic safety and habitability requirements. Failure to meet these standards can result in a voucher holder being unable to lease the property, leading to potential vacancies.
In summary, with an FMR of $1230, landlords in ZIP 35135 can expect fair reimbursement while maintaining market competitiveness. The 20.2% renter share signals a consistent demand for rental properties, and the median home value of $305,037 provides a realistic expectation for property acquisition costs. Ensuring compliance with HQS is essential for successful participation in the Section 8 program.
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.