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 | $1,450 |
| 1 Bedroom | $1,560 |
| 2 Bedrooms | $1,700 |
| 3 Bedrooms | $2,140 |
| 4 Bedrooms | $2,400 |
| 5 Bedrooms | $2,784 |
| 6 Bedrooms | $3,118 |
| 7 Bedrooms | $3,367 |
| 8 Bedrooms | $3,535 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,560 | $103,885 | 1.5% | A+ |
| 2BR | $1,700 | $172,574 | 0.99% | C |
| 3BR | $2,140 | $368,119 | 0.58% | F |
| 4BR | $2,400 | $582,731 | 0.41% | F |
| 5BR | $2,784 | $841,501 | 0.33% | F |
U.S. Census Bureau data (2024)
Vestavia Hills, AL, located in ZIP code 35216, has a population of 34,327 residents. The area is characterized by a significant rental market, with 44.4% of the population being renters. This suggests that Vestavia Hills is a moderately renter-heavy ZIP, but not overwhelmingly so. The median household income in this area stands at $74,525, which provides a basis for understanding the economic context of potential tenants.
The typical market rent in Vestavia Hills is $1,489 per month. Given the median household income, this means that the average rent consumes approximately 19.9% of the monthly income. To calculate this, we take the annual median income ($74,525) and divide it by 12 months to get the monthly income ($6,210.42), then divide the typical rent ($1,489) by the monthly income and multiply by 100 to find the percentage (19.9%). This indicates that rent is a considerable portion of the income for many households, though not excessively so.
The Fair Market Rent (FMR) for Vestavia Hills for fiscal year 2024 is set at $1,510, slightly higher than the current market rent. This difference suggests that there is some flexibility in pricing, but also that landlords may face competition from other properties aiming to attract tenants with housing vouchers. The FMR serves as a benchmark for voucher amounts, and the proximity of the market rent to this figure implies a relatively strong demand for Section 8 vouchers among the tenant pool.
A landlord in Vestavia Hills can expect a mix of tenants, including those who rely on housing vouchers due to the significant proportion of renters and the reasonable gap between market rents and the FMR. However, the overall income level of the area is relatively high, which means that there is a substantial number of tenants who can afford market rates without assistance. Landlords should prepare for a tenant base that includes both voucher holders and those paying market rates, ensuring they have a diverse range of rental units to cater to these different needs.
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.