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 | $1,600 |
| 1 Bedroom | $1,720 |
| 2 Bedrooms | $1,870 |
| 3 Bedrooms | $2,350 |
| 4 Bedrooms | $2,640 |
| 5 Bedrooms | $3,062 |
| 6 Bedrooms | $3,429 |
| 7 Bedrooms | $3,703 |
| 8 Bedrooms | $3,888 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,720 | $198,802 | 0.87% | C |
U.S. Census Bureau data (2024)
ZIP code 35233, located within the Birmingham-Hoover, AL HUD Metro FMR Area, presents an interesting profile compared to typical ZIP codes in this region. The Fair Market Rent (FMR) for 35233 stands at $1740 for fiscal year 2024, which is slightly above the market rent of $1,607. This suggests that the area is somewhat competitive in terms of rental pricing.
The median home value in 35233 is $314,491, which is indicative of a mid-tier neighborhood within the larger metro area. Home values in this range are neither at the premium end nor the lower value segment of the housing market, placing it squarely in the middle where affordability meets reasonable investment potential.
A key distinguishing factor is the high renter share of 92.8%. This figure significantly exceeds the average renter share in the Birmingham-Hoover area, suggesting a strong demand for rental properties. High renter shares typically mean that a large portion of residents rely on rental housing, which can be advantageous for landlords seeking steady tenancy and potentially higher occupancy rates.
The combination of a high renter share and below-average home values within the metro area points towards a potential value pocket for Section 8 investors. Such areas are attractive because they offer opportunities to invest in properties that are affordable to low-income renters while maintaining a competitive edge in terms of rental income.
To summarize, ZIP 35233 is positioned as a mid-tier neighborhood with respect to home values but stands out as a value pocket due to its high renter share and slightly elevated FMR relative to the market rent. This makes it a promising area for landlords and small-portfolio investors looking to leverage the strong rental market dynamics.
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.