Location: Birmingham-Hoover, AL | Metro: Birmingham-Hoover, AL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $830 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $970 |
| 3 Bedrooms | $1,220 |
| 4 Bedrooms | $1,370 |
| 5 Bedrooms | $1,589 |
| 6 Bedrooms | $1,780 |
| 7 Bedrooms | $1,922 |
| 8 Bedrooms | $2,018 |
U.S. Census Bureau data (2024)
The ZIP code 35172, located within the Birmingham-Hoover, AL HUD Metro FMR Area, presents an interesting profile when compared to typical ZIP codes in the same metro area. The Fair Market Rent (FMR) for 35172 is set at $970 for fiscal year 2024, which is higher than the market rent figure of $823. This indicates that while the government's estimate for reasonable rental costs is slightly above what the market currently dictates, it still offers a good margin for landlords participating in the Section 8 program.
The median home value in ZIP 35172 stands at $182,480, which is notably lower than the average home value in the Birmingham-Hoover metro area. This suggests that 35172 could be considered a value pocket within the larger market, offering opportunities for both landlords and small-portfolio investors to acquire properties at a relatively lower cost.
A key indicator for potential investment attractiveness is the renter share, which is 17.8% in ZIP 35172. This percentage is somewhat below the average for the Birmingham-Hoover metro, suggesting that the majority of residents own their homes rather than renting. However, the combination of a below-average home value and a significant renter population still points to a viable rental market, especially for those who cater to Section 8 tenants.
In summary, ZIP 35172 appears to be a value pocket within the Birmingham-Hoover, AL HUD Metro FMR Area. Its lower home values and decent renter share make it an attractive location for landlords and small-portfolio investors looking to participate in the Section 8 program. The discrepancy between the FMR and market rent also provides a clear advantage, ensuring that landlords can receive a subsidy that exceeds current market rates.
Data Sources: FMR data from HUD (2027). 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.