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 | $1,110 |
| 1 Bedroom | $1,190 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,630 |
| 4 Bedrooms | $1,840 |
| 5 Bedrooms | $2,134 |
| 6 Bedrooms | $2,390 |
| 7 Bedrooms | $2,581 |
| 8 Bedrooms | $2,710 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,300 | $289,171 | 0.45% | F |
| 3BR | $1,630 | $385,806 | 0.42% | F |
| 4BR | $1,840 | $651,589 | 0.28% | F |
| 5BR | $2,134 | $832,113 | 0.26% | F |
U.S. Census Bureau data (2024)
1110 is the Fair Market Rent (FMR) for ZIP 35222 in Birmingham, AL, for fiscal year 2024, indicating the maximum amount Section 8 can pay for a rental unit. 1137 is the Zillow Observed Rent Index (ZORI), which reflects the average market rent in the same area, showing a slight premium over the FMR. 392,097 is the median home value in ZIP 35222, suggesting a moderate cost of living compared to other areas in the state. 43.6% is the percentage of households that rent, demonstrating a significant demand for rental properties in the area. 84,066 is the median income, providing insight into the financial capacity of potential tenants. 26 days is the typical time on the market for rental listings, implying a reasonably quick turnover rate for landlords. 0.3% is the share of listings that require price cuts, indicating a stable rental market where pricing adjustments are rarely necessary.
Investors should note that the FMR of 1110 aligns closely with the market rent of 1,137, making Section 8 a viable option without substantial loss. The median home value of 392,097 and median income of 84,066 suggest that while the area is affordable, there is still a need for subsidized housing options. With a 43.6% renter share, the demand for rental units is strong, and the low price-cut share of 0.3% ensures that landlords can maintain their asking prices effectively. A 26-day DOM indicates a competitive but not oversaturated market, allowing landlords to secure tenants promptly.
The verdict for Section 8 in ZIP 35222 is positive, given the close alignment between FMR and market rents, combined with a robust rental demand and stable market conditions.
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.