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 |
|---|---|---|---|---|
| 2BR | $920 | $239,535 | 0.38% | F |
| 3BR | $1,160 | $308,216 | 0.38% | F |
| 4BR | $1,300 | $362,508 | 0.36% | F |
| 5BR | $1,508 | $429,644 | 0.35% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 35146 (Springville, AL) on the axes of yield and stability reveals a market that offers moderate potential but with notable risks.
Yield Analysis: The Fair Market Rent (FMR) for ZIP 35146 in fiscal year 2024 is set at $970, which is significantly below the market rent of $1,859. This suggests an opportunity for landlords to potentially charge above the FMR, thereby increasing their rental income. However, the median home value of $324,338 indicates a relatively higher investment cost compared to the rental income. Therefore, the yield potential is moderate, driven by the disparity between FMR and market rents.
Stability Analysis: The stability of this market is somewhat compromised. With only 11.8% of the population being renters, there is a limited pool of tenants, which could affect the ease of finding and retaining residents. Additionally, the lack of available data on days on market (DOM) makes it challenging to assess the speed at which properties can be rented out. The median household income of $86,614 provides some assurance that residents have the financial capacity to pay rent, though this figure alone does not guarantee stable occupancy rates.
Based on these figures, ZIP 35146 appears to be a market that offers neither the highest yields nor the most stable cash flows. It presents a scenario where landlords might achieve decent returns by charging slightly above the FMR, but the risks associated with a smaller rental pool and uncertain market dynamics suggest a cautious approach. This area is best classified as a middle-ground option, suitable for those willing to take moderate risks for potentially good returns.
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.