Why Birmingham Ranks Among the Best Section 8 Markets
Birmingham, in Jefferson County, is an A-grade Section 8 market on CloseHound, where voucher rent routinely beats the open market and supports strong cash-on-cash before financing. The median 3-bedroom voucher pays $1,365/mo, and what sets it apart is the cost side: a cheap $137,000 supported entry price paired with the lowest property tax in the country at roughly 0.4%.
The honest framing of an A grade is that the edge here is structural — cheap entry plus minimal tax equals strong net yield, not a get-rich shortcut. Insurance runs about 0.9%, so still underwrite the full carry on each of the 10 screened ZIPs. Screen any Birmingham address free on CloseHound to confirm it clears the $137,000 supported price.
Birmingham HUD Section 8 voucher rents by ZIP (FY2026)
Official HUD Small Area Fair Market Rents — the voucher ceiling a landlord can collect in each ZIP, by bedroom count.
| ZIP code | 2-bed | 3-bed | 4-bed |
|---|---|---|---|
| 35206 | $1,150/mo | $1,440/mo | $1,640/mo |
| 35207 | $1,020/mo | $1,280/mo | $1,430/mo |
| 35208 | $1,070/mo | $1,340/mo | $1,520/mo |
| 35211 | $1,150/mo | $1,440/mo | $1,640/mo |
| 35212 | $1,020/mo | $1,280/mo | $1,430/mo |
| 35215 | $1,260/mo | $1,580/mo | $1,790/mo |
| 35217 | $1,040/mo | $1,300/mo | $1,480/mo |
| 35218 | $1,030/mo | $1,290/mo | $1,470/mo |
| 35224 | $1,110/mo | $1,390/mo | $1,580/mo |
| 35228 | $1,150/mo | $1,440/mo | $1,640/mo |
Source: HUD FY2026 SAFMR. CloseHound underwrites live listings against these exact ceilings.
Cheap entry + the lowest property tax in the country (~0.4%) = strong net yield.
More Section 8 markets in Alabama
Birmingham Section 8 FAQ
What's the Section 8 voucher rent for a 3-bed in Birmingham?+
The median 3-bedroom voucher in Birmingham pays about $1,365/mo for FY2026, with screened ZIPs ranging from $1,280 to $1,580.
Is Birmingham a good Section 8 market?+
Yes — it's an A on CloseHound, the top grade. Cheap entry around $137,000 plus the country's lowest property tax (~0.4%) make it one of the strongest net-yield Section 8 markets.
What's the property-tax and insurance drag in Birmingham?+
Property tax is roughly 0.4%, the lowest in the U.S., and insurance runs about 0.9%. That low tax is the main reason the voucher rent converts to such strong net cash flow.
How do I find cash-flowing Section 8 deals in Birmingham?+
Use CloseHound's free screener to test a property's price against the $1,365/mo median 3-bed voucher and the $137,000 1%-rule supported price across Birmingham's screened ZIPs.
Screen Birmingham deals free
See which Birmingham listings actually cash-flow on the voucher — underwritten and ranked by Deal Score.
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