Section 8 Fair Market Rent (FMR) for ZIP 35143 - 2027

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

Investment Score for ZIP 35143

N/A

Monthly Rent (2BR)

$930

Median Price (2BR)

$N/A

1% Rule

Annual Yield

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	$800
1 Bedroom	$850
2 Bedrooms	$930
3 Bedrooms	$1,170
4 Bedrooms	$1,310
5 Bedrooms	$1,520
6 Bedrooms	$1,702
7 Bedrooms	$1,838
8 Bedrooms	$1,930

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
3BR	$1,170	$378,389	0.31%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

3,146

Median Household Income

$72,500

Housing Units

1,885

Renter Percentage

16.0%

Occupancy Rate

70.8%

Renter Occupied

213

ZIP code 35143, located in the heart of Alabama, offers a stable real estate market that is attractive for both landlords and small-portfolio investors. The area is characterized by moderate rental prices and a reasonable proportion of renters.

The Fair Market Rent (FMR) for ZIP 35143 in fiscal year 2024 is set at $970.
The average market rent, according to the latest Census ACS data, stands at $775.
The median home value in the area is $320,835, providing a solid base for property investments.
Renters make up 16.0% of the housing market, indicating a steady demand for rental properties.
The median household income is $72,500, which supports the ability of residents to pay rent or mortgage payments.

The data points suggest that while there is a gap between the FMR and the actual market rent, the area still presents a viable investment opportunity for those interested in rental properties. With a median home value that reflects the local economy and a significant portion of renters, landlords can expect a consistent tenant pool. However, investors should be cautious about the relatively low renter share compared to other areas, which might affect the speed of property turnover and the availability of 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.