Section 8 Fair Market Rent (FMR) for ZIP 35255 - 2027

Location: Birmingham-Hoover, AL | Metro: Birmingham-Hoover, AL HUD Metro FMR Area

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$1,170
1 Bedroom$1,260
2 Bedrooms$1,370
3 Bedrooms$1,720
4 Bedrooms$1,930
5 Bedrooms$2,239
6 Bedrooms$2,508
7 Bedrooms$2,709
8 Bedrooms$2,844

The ZIP code 35255 is located in Birmingham, AL, and represents an established neighborhood with approximately 10,255 residents. This working-class area has a median household income of $40,255 and median home values around $161,422.

The median rent in the area is $1,118, while the Fair Market Rent (FMR) for ZIP code 35255 in fiscal year 2024 is set at $1,240. This indicates that the market rent is slightly lower than the FMR, suggesting a modest opportunity for landlords operating under Section 8 vouchers.

Birmingham, AL (35255) is well-suited for both hands-off voucher operators and hands-on value-add buyers. The lower-than-average cost of living index of 59 means that your dollar stretches further here, translating to higher disposable income for residents. The median age of 33.1 years suggests a younger, dynamic community with potential for growth, making it attractive for hands-on investors looking to add value through improvements and renovations.

For hands-off operators, the modest gap between market rents and FMR provides a stable environment for managing properties under Section 8. However, hands-on investors could find opportunities in improving properties to command closer to the FMR, thereby increasing profitability.

Data Sources: FMR data from HUD (2027).

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.