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 | $1,100 |
| 1 Bedroom | $1,190 |
| 2 Bedrooms | $1,290 |
| 3 Bedrooms | $1,620 |
| 4 Bedrooms | $1,820 |
| 5 Bedrooms | $2,111 |
| 6 Bedrooms | $2,364 |
| 7 Bedrooms | $2,553 |
| 8 Bedrooms | $2,681 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,290 | $56,000 | 2.3% | A+ |
| 3BR | $1,620 | $88,264 | 1.84% | A+ |
| 4BR | $1,820 | $122,733 | 1.48% | A |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 35228, located in Midfield, AL, within Jefferson County, revolve around the Subsidized Average Fair Market Rent (SAFMR) which is specifically tailored for this ZIP code. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $1150. This figure represents the maximum amount that the housing authority will pay on behalf of the tenant.
The local market rent, as measured by Zillow's Observed Rent Index (ZORI), stands at $1,128 for a similar unit. Landlords often wonder how much they can realistically expect from a voucher when considering the tenant's contribution and utility allowances.
A tenant participating in the Section 8 program is typically responsible for paying 30% of their adjusted income towards rent. This amount is known as the tenant portion. Additionally, utility allowances are provided based on the type of unit and its location. In ZIP 35228, the utility allowance for a two-bedroom apartment is included in the SAFMR calculation but is not directly paid to the landlord. Instead, it is part of the overall subsidy structure.
To illustrate, let’s assume a tenant’s adjusted income is $1,000 per month. Thirty percent of this income amounts to $300, which is what the tenant would pay. The housing authority would then cover the remaining portion up to the SAFMR limit of $1150. Therefore, the landlord would receive $300 from the tenant plus $850 from the housing authority, totaling $1150 per month.
This means that if the local market rent is $1,128, the landlord would be receiving slightly above the average market rate for a two-bedroom unit. However, the reimbursement gap or surplus depends on whether the landlord charges more or less than the SAFMR. Given the SAFMR is $1150 and the local market rent is $1,128, the landlord would have a surplus of $22 per month if they charge the ZORI rate.
In summary, landlords in ZIP 35228 can expect a steady stream of rental income from Section 8 vouchers, with the total payment being $1150 for a two-bedroom apartment. This amount exceeds the local market rent, resulting in a small surplus for landlords who charge the average market rate. The specific dollar figures ensure landlords are aware of the economic realities of participating in the Section 8 program in this area.
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.