Section 8 Fair Market Rent (FMR) for ZIP 35953 - 2027

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

Investment Score for ZIP 35953

N/A

Monthly Rent (2BR)

$1,170

Median Price (2BR)

$N/A

1% Rule

Annual Yield

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,000
1 Bedroom	$1,070
2 Bedrooms	$1,170
3 Bedrooms	$1,470
4 Bedrooms	$1,650
5 Bedrooms	$1,914
6 Bedrooms	$2,144
7 Bedrooms	$2,316
8 Bedrooms	$2,432

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$1,470	$290,820	0.51%	F
4BR	$1,650	$401,623	0.41%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

7,083

Median Household Income

$73,750

Housing Units

3,354

Renter Percentage

14.1%

Occupancy Rate

80.4%

Renter Occupied

380

The ZIP code 35953, located in Alabama, offers a stable real estate market for both homeowners and renters. The area is characterized by modest rental prices and a reasonable median home value, making it attractive for small-portfolio investors looking to capitalize on affordable housing opportunities. This analysis will delve into key metrics that define the rental and housing market in this region.

The Fair Market Rent (FMR) for ZIP 35953 in fiscal year 2024 is set at $1250, indicating the average monthly rent for a two-bedroom apartment under the Section 8 program.
The market rent, according to the latest Census American Community Survey (ACS), stands at $761, which is significantly lower than the FMR, suggesting a potential gap between government subsidies and market rates.
The median home value in the area is $251,956, providing a benchmark for property investment and resale values.
Renters make up 14.1% of the population, a figure that suggests a moderate demand for rental properties but also indicates a substantial owner-occupied housing stock.
The median household income in ZIP 35953 is $73,750, offering insight into the financial capabilities of potential tenants and buyers.

In summary, ZIP 35953 presents a balanced real estate opportunity where the disparity between the FMR and market rent can be leveraged for profit. With a median home value that is accessible for many investors, the area also benefits from a median income level that supports both ownership and rental markets. However, the relatively low renter share implies that the primary focus should be on properties that cater to those eligible for Section 8 assistance, given the higher subsidy rate compared to the local market rent. This makes the ZIP code particularly appealing for those who can manage properties effectively and understand the nuances of subsidized housing.

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.