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 | $1,760 |
| 1 Bedroom | $1,890 |
| 2 Bedrooms | $2,060 |
| 3 Bedrooms | $2,590 |
| 4 Bedrooms | $2,910 |
| 5 Bedrooms | $3,376 |
| 6 Bedrooms | $3,781 |
| 7 Bedrooms | $4,083 |
| 8 Bedrooms | $4,287 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,060 | $349,282 | 0.59% | F |
| 3BR | $2,590 | $568,408 | 0.46% | F |
| 4BR | $2,910 | $1,259,711 | 0.23% | F |
| 5BR | $3,376 | $1,641,852 | 0.21% | F |
U.S. Census Bureau data (2024)
In ZIP code 35213, which encompasses Mountain Brook, AL, in Jefferson County, the economics of Section 8 housing vouchers can be quite straightforward when analyzed with the correct figures. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code for FY 2024 is set at $1870. This figure represents the maximum amount that the Housing Choice Voucher program will pay for a two-bedroom rental unit in Mountain Brook.
The local market rent, as measured by ZORI (Zillow Observed Rental Index), stands at $1513. This means that the average rent for a similar two-bedroom unit in the area is below the SAFMR. However, landlords should understand that the actual reimbursement they receive from a voucher is not simply the SAFMR. Instead, it's calculated based on a combination of factors including the tenant's portion of the rent and utility allowances.
The tenant's portion of the rent is typically 30% of their adjusted income. If the tenant's income is low enough, this could mean a very small contribution towards the monthly rent. Utility allowances are additional payments made by the housing authority to cover electricity, gas, water, and sewer costs. These allowances vary but are designed to ensure tenants can afford basic utilities without compromising their ability to pay rent.
To illustrate, if a tenant's portion of the rent is $300, and the utility allowance is $100, then the total reimbursement a landlord would receive is the sum of these amounts plus the SAFMR. In this case, the landlord would receive $2270 per month for a two-bedroom unit. This is higher than the local market rent of $1513, indicating that landlords participating in the Section 8 program in Mountain Brook could see a surplus of $757 per month above the average market rent.
This surplus exists because the SAFMR is set higher than the local market rent, providing an incentive for landlords to participate in the program. It ensures that landlords in Mountain Brook are not financially disadvantaged by renting to Section 8 tenants, and in fact, they can benefit from a higher guaranteed payment compared to the prevailing market rates.
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.