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 |
The analysis of ZIP code 35295 in the Birmingham-Hoover, AL HUD Metro FMR Area reveals several key points that are crucial for landlords and small-portfolio investors.
The first question to address is whether the rent math works. The Fair Market Rent (FMR) for ZIP 35295 for fiscal year 2024 is set at $1240. However, due to the lack of available data on the current market rent, it's impossible to directly compare these figures. Nonetheless, if the FMR is reflective of the actual market conditions, landlords can expect to charge around $1240 per month to remain competitive and viable in this area.
Regarding the affordability of acquisition, the data does not provide specific figures for the median home value, days on market (DOM), or the percentage of homes that have been subject to price cuts. Without these details, it's challenging to assess the overall cost and ease of acquiring properties in this ZIP code. Investors should seek additional local real estate market data to make informed decisions about property purchases.
The third question concerns tenant demand. Again, the data lacks specific figures for the population size and the percentage of residents who are renters. This absence of data makes it difficult to gauge the number of potential tenants and the strength of the rental market in ZIP 35295.
Verdict: While the Fair Market Rent provides a benchmark for monthly rental income at $1240, the lack of detailed market data hinders a comprehensive analysis of both acquisition costs and tenant demand. Landlords and investors must rely on supplementary sources to understand the full picture of the real estate market in ZIP 35295. They should consider conducting thorough research on local real estate trends, including home values, rental rates, and demographic information, before making any investment 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.