Location: Birmingham-Hoover, AL | Metro: Birmingham-Hoover, AL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $910 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,500 |
| 5 Bedrooms | $1,740 |
| 6 Bedrooms | $1,949 |
| 7 Bedrooms | $2,105 |
| 8 Bedrooms | $2,210 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 35176 within the Birmingham-Hoover, AL HUD Metro FMR area reveals key insights for landlords and small-portfolio investors. The first question addresses whether the rent math works. The Fair Market Rent (FMR) for the zip code for fiscal year 2024 is set at $970, while the market rent based on Census ACS data stands at $964. This indicates that the rent levels are closely aligned with the market, making it feasible for landlords to charge rents that are both competitive and meet the requirements for Section 8 housing.
Moving on to the affordability of acquisitions, the data presents a challenge. The median home value is listed as N/A, which means there's insufficient information to determine if homes are priced within an affordable range for investment. Additionally, the days on market (DOM) and the percentage of homes that require a price cut before selling are also marked as N/A. This lack of detail makes it difficult to assess the ease and cost-effectiveness of acquiring properties in this area.
The third question concerns tenant demand. With a total population of 704 individuals, and 31.1% of them being renters, there is a significant but limited pool of potential tenants. This suggests that while there is demand, the size of the zip code and the number of renters may limit the scale of investment opportunities.
In summary, the rent math in ZIP 35176 aligns well with the market, supporting the viability of Section 8 rentals. However, the lack of data on median home values, days on market, and the percentage of homes needing price reductions complicates the assessment of acquisition costs and feasibility. Despite these uncertainties, the existing renter population provides a clear demand for rental housing, albeit in a smaller market. Landlords and investors should proceed with caution, considering the limited scope of available data and the relatively small number of potential tenants.
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.