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 | $1,270 |
| 1 Bedroom | $1,360 |
| 2 Bedrooms | $1,480 |
| 3 Bedrooms | $1,860 |
| 4 Bedrooms | $2,090 |
| 5 Bedrooms | $2,424 |
| 6 Bedrooms | $2,715 |
| 7 Bedrooms | $2,932 |
| 8 Bedrooms | $3,079 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,480 | $208,696 | 0.71% | D |
| 3BR | $1,860 | $340,530 | 0.55% | F |
| 4BR | $2,090 | $459,505 | 0.45% | F |
| 5BR | $2,424 | $562,831 | 0.43% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 35173 does not work favorably for landlords. The Fair Market Rent (FMR) set at $1,600 for fiscal year 2024 contrasts sharply with the actual market rent of $1,237, based on Census ACS data. This discrepancy indicates that landlords may struggle to cover costs and maintain profitability if they adhere strictly to the HUD-set FMR.
Acquisition of properties in Trussville is relatively affordable. With a median home value of $383,267, the area presents a reasonable entry point for investment. However, the 44-day Days on Market (DOM) and a mere 0.2% share of homes experiencing price cuts suggest that the market is competitive and sellers are generally unwilling to lower their asking prices, which could impact the negotiation power of buyers.
Tenant demand in ZIP 35173 is moderate. The population stands at 31,603, with 9.9% of residents being renters. This indicates a smaller pool of potential tenants compared to areas with higher renter shares, but it still represents a significant number of individuals who might be looking for rental housing.
Verdict: Investing in ZIP 35173 presents challenges and opportunities. The disparity between FMR and market rent makes it difficult to achieve high returns through rental income alone. However, the median home value offers an affordable entry point into the market. Tenant demand is present but limited by the relatively low renter share. Landlords and small-portfolio investors should carefully consider these factors before making investment decisions in this area.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.