Location: Birmingham-Hoover, AL | Metro: Birmingham-Hoover, AL HUD Metro FMR Area
| 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 |
To classify ZIP code 35261 in Unknown, AL, we need to analyze the available data points on yield and stability. The Fair Market Rent (FMR) for the fiscal year 2024 is set at $1240. This figure represents the maximum monthly rent that a tenant with a voucher can pay in this area. However, the market rent and home values are not provided, which limits our ability to fully assess the yield potential compared to typical market conditions.
On the stability axis, there is insufficient data to make a precise determination. Key indicators such as the percentage of renters, days on market (DOM), and median household income are all marked as N/A. Without these metrics, it's challenging to gauge the reliability of rental income or the speed at which properties might sell if they were to be flipped.
Given the limited information, ZIP 35261 cannot be confidently classified into a high-yield/low-stability flip-style market or a steady-cashflow zone. The FMR of $1240 suggests a moderate yield environment, assuming the actual market rents align closely with the FMR. However, the lack of stability metrics prevents us from understanding how consistent this yield might be over time or the risk involved in holding or flipping properties.
To provide a more accurate classification, additional data would be necessary. For instance, knowing the market rent could help determine if there is an opportunity for higher yields above the FMR. Similarly, understanding the percentage of renters and median income would clarify the financial health and commitment level of potential tenants, contributing to a clearer picture of stability.
In conclusion, based on the provided data, ZIP 35261 appears to offer a moderate yield potential with an FMR of $1240, but without further stability metrics, it's difficult to recommend a specific investment strategy. Landlords and small-portfolio investors should seek out more detailed local market analysis before making any decisions.
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.