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 | $1,220 |
| 1 Bedroom | $1,300 |
| 2 Bedrooms | $1,420 |
| 3 Bedrooms | $1,780 |
| 4 Bedrooms | $2,000 |
| 5 Bedrooms | $2,320 |
| 6 Bedrooms | $2,598 |
| 7 Bedrooms | $2,806 |
| 8 Bedrooms | $2,946 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,780 | $315,795 | 0.56% | F |
| 4BR | $2,000 | $420,827 | 0.48% | F |
U.S. Census Bureau data (2024)
The ZIP code 35186 presents a dynamic rental market that is currently well-balanced between supply and demand, given the available data points. The Fair Market Rent (FMR) set at $1240 for the fiscal year 2024 aligns closely with the reported market rent of $1,283 based on Census American Community Survey data. This suggests that rental prices in the area are reflective of what the federal government deems fair, indicating a stable market without significant overvaluation or undervaluation.
The median home value of $360,436 provides insight into the overall property values within the ZIP code. While this figure alone doesn't reveal the supply-demand ratio, it can be indicative of the economic status of the area and the potential for homeownership versus renting.
A notable aspect of the market is the 16.9% renter share, which is relatively low. This percentage reflects the proportion of households that are renters rather than owners, suggesting that there is a higher preference for homeownership in this area. However, a lower renter share can also imply long-term housing pressure, as fewer units are being rented, potentially leading to increased competition among renters for available properties.
The lack of data regarding the percentage of price cuts and days on market (DOM) means we cannot definitively state whether there is an oversupply or undersupply of rental units. However, the close alignment of FMR and market rent, along with the median home value, suggests that the market is neither experiencing a glut of rental properties nor a severe shortage.
In summary, ZIP 35186 offers a rental market that is in equilibrium, with prices reflecting both federal standards and local conditions. The relatively low renter share indicates a strong inclination towards homeownership but also hints at the potential for future rental pressures as demand for housing increases.
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.