Best Section 8 zip codes in Birmingham?

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Cody Mitchell
Investor · College Station, TX · Member since 2019 · 40 posts · 25 votes
3y

Hey Mat, I don't specifically shoot for Section 8, but some solid places (C plus or B minus areas with good demand and good price to rent ratios) that I like for single family rentals in the Birmingham area are Adamsville (35005), Forestdale (35214), and Hueytown (35023 or 35061). Hope this helps!

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  • John Chong
    Lender · Houston, TX · Member since 2023 · 235 posts · 255 votes
    3y

    Not too sure about section 8 in Birmingham but following the thread 

    0Reply
  • Micah Phoenix
    Real Estate Agent · AL · Member since 2023 · 7 posts · 3 votes
    3y

    Hi Mat, I'm actually an agent in the Birmingham area and tend to work with a lot of investors. If you'd be interested in working together, please shoot me a direct message and we can schedule a phone call for further conversation. Thanks. 

    1Reply
  • Cody Mitchell
    Investor · College Station, TX · Member since 2019 · 40 posts · 25 votes
    3y

    Hey Mat, I don't specifically shoot for Section 8, but some solid places (C plus or B minus areas with good demand and good price to rent ratios) that I like for single family rentals in the Birmingham area are Adamsville (35005), Forestdale (35214), and Hueytown (35023 or 35061). Hope this helps!

    6Reply
  • Mat Yuriditsky
    OP
    Investor · Los Angeles, CA · Member since 2022 · 29 posts · 19 votes
    3y

    that's a big help.  Thank you

    0Reply
  • John Chong
    Lender · Houston, TX · Member since 2023 · 235 posts · 255 votes
    3y

    @Cody Mitchell Thanks for the zip codes and areas, that was really helpful 

    1Reply
  • Matt Wallington
    Real Estate Agent · Birmingham, AL · Member since 2017 · 19 posts · 14 votes
    3y

    Also check out the Titusville and Ensley communities

    4Reply
  • Beena ShahPro Member
    Realtor · Birmingham, AL · Member since 2020 · 23 posts · 13 votes
    2y
    Quote from @Mat Yuriditsky:

    Hi everyone,

    I'm currently looking to BRRRR a property in Birmingham (or surrounding areas) and rent out Section 8. Any suggestions for good zip codes?

    I run my real estate business here in Birmingham, And have several rentals too. I'd say north of interstate 59/20 and West of I65 (and few on east), Lots of zip codes to list here, I will list some cities that you can google Bessemer (top on my list), Midfield, Fairfield Hueytown, Center point. Adamsville, Pleasant Grove. Hope this helps
     
    3Reply
  • Beena ShahPro Member
    Realtor · Birmingham, AL · Member since 2020 · 23 posts · 13 votes
    2y
    Quote from @John Chong:

    @Cody Mitchell Thanks for the zip codes and areas, that was really helpful 

    See my msg below to @mat Yuriditsky, Hope that helps.

    1Reply
  • Mat Yuriditsky
    OP
    Investor · Los Angeles, CA · Member since 2022 · 29 posts · 19 votes
    2y
    Quote from @Beena Shah:
    Quote from @Mat Yuriditsky:

    Hi everyone,

    I'm currently looking to BRRRR a property in Birmingham (or surrounding areas) and rent out Section 8. Any suggestions for good zip codes?

    I run my real estate business here in Birmingham, And have several rentals too. I'd say north of interstate 59/20 and West of I65 (and few on east), Lots of zip codes to list here, I will list some cities that you can google Bessemer (top on my list), Midfield, Fairfield Hueytown, Center point. Adamsville, Pleasant Grove. Hope this helps
     

     thank you!

    0Reply
  • Hunter TerrynPro Member
    Birmingham, AL · Member since 2021 · 79 posts · 68 votes
    2y

    @Beena Shah and @Matt Wallington shared some great S8-heavy neighborhoods. Would also recommend East Lake, Roebuck, and Huffman. 

    We do a ton of Section 8 rentals here so feel free to reach out if you have any other questions!

    [email protected]205-546-2231
    1Reply
  • Boyd McClean
    Member since 2023 · 14 posts · 1 vote
    2y

    Hunter interesting comment about sec 8. I have been watching Birmingham for several months and am concerned that many of the areas mentioned in this thread have high crime issues. East Lake has high crime while Roebuck is 50% good and 50% not so good. Center Park Pkwy seems to be a dividing line. Overall crime D+.

    https://crimegrade.org/safest-places-in-south-east-lake-birm...

    1Reply
  • Lindsay DavisBusiness Member
    Real Estate Broker · Birmingham, AL · Member since 2019 · 326 posts · 201 votes
    2y

    @Mat Yuriditsky,

    We manage over 1,000 units in Jefferson County/the Birmingham metro area, and about 10% are occupied by tenants with Section 8 vouchers.

    We observe that the majority of our Section 8 units are clustered in one of two general areas. The first is in northeast Birmingham, starting from the airport in the south up to Center Point and Pinson in the north. Specifically, we have Section 8 units in 35217, 35206, 35235, 35215, 35126.

    The other area consists of suburbs in west Birmingham—all the way from McCalla down in the far southwest to places like Graysville in the far northwest. Notably, we manage Section 8 units (listed from southwest to northwest) in 35022, 35020, 35023, 35127, 35224, 35005, 35214, and 35073.

    That said, it’s far more difficult to name the “best” zip codes for Section 8, since you would need to factor in numerous additional risk and reward factors (e.g. rent growth potential, neighborhood quality, vacancy risk, turnover risk, repair risk, etc.).

    205-205-4118
    Spartan Invest4.8134 Reviews
    WebsiteView Page
    4Reply
  • Scott Mac
    Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
    2y
    Quote from @Mat Yuriditsky:

    Hi everyone,

    I'm currently looking to BRRRR a property in Birmingham (or surrounding areas) and rent out Section 8. Any suggestions for good zip codes?

    You could come at this kind of sideways.

    Find places that have the services and busineses that "income challenged" (RENTERS) like to use.

    Best would be if within walking distance, things like rent to own furniture, liquor stores, convenience stores, fast food - McD's Jack in the Box, 24 hour car parts, health clinics, (Bus Stops), buy here pay here car sales, a grocery store, Target, WalMart, auto repair shops, etc..

    Things they need and can afford.  

    If you buy in an expensive area and hope for a Section-8er to choose your place, it might not be as popular as something in an area where they can afford the services and get to them easily.

    That way when you advertise you can say, 2 blocks from Jack in the Box and Target, and right on the Bus Route.

    Just my 2 cents.

    1Reply
  • Juan Carlos Flores Garcia
    Member since 2021 · 33 posts · 10 votes
    9mo

    Hi everyone, I’m looking into investing in single-family rentals in the Birmingham, AL area and potentially focusing on Section 8 rentals. I’d appreciate real-world feedback from anyone familiar with the market there.

    1. Section 8 Demand:
      How strong is the demand for Section 8 rentals in Birmingham/Jefferson County right now? Do Housing Authorities have long waitlists, and are units renting quickly? 🇺🇸 (I’ve read there’s a large tenant pool here but would like investor experience.) 

    2. Has anyone noticed population growth or rental stability in the metro area (not just downtown)? Are certain ZIP codes or neighborhoods better for long-term renters vs. others? (Jefferson County itself has ~670,000 people and the broader metro is over 1.1 M) 
    3. Is the Section 8 market saturated in Birmingham due to past investor activity? Are there streets/areas worth avoiding entirely because of crime or oversupply? Heard that investor buys have increased competition and tenant wear/tear in some areas. 
    4. Property Management:
      Which local property management companies have you used that are good with Section 8 properties? Any that do accept Section 8 and work closely with Housing Authorities? (I’ve seen some mentions of First Choice and others.) 
    5. Evictions & Operations:
      For out-of-state owners: How are evictions handled and how responsive are managers with tenant issues? Any experiences with timelines or difficulties getting issues resolved? BiggerPockets
    6. Best ZIP Codes:
      Are there particular ZIP codes in Birmingham that you’ve found cheap properties (<~$100k) that still generate strong rents or Section 8 payment standards?
    7. General Advice:
      Any advice on working with the Housing Authority (HABD, Bessemer, JC Housing) and getting units approved fast?

    Thanks in advance — looking to connect with local experts or investors familiar with Birmingham.

    0Reply
    • Jason CoryPro Member
      Real Estate Broker · Birmingham, AL · Member since 2018 · 264 posts · 381 votes
      9mo
      Quote from @Juan Carlos Flores Garcia:

      Hi everyone, I’m looking into investing in single-family rentals in the Birmingham, AL area and potentially focusing on Section 8 rentals. I’d appreciate real-world feedback from anyone familiar with the market there.

      1. Section 8 Demand:
        How strong is the demand for Section 8 rentals in Birmingham/Jefferson County right now? Do Housing Authorities have long waitlists, and are units renting quickly? 🇺🇸 (I’ve read there’s a large tenant pool here but would like investor experience.) 

      2. Has anyone noticed population growth or rental stability in the metro area (not just downtown)? Are certain ZIP codes or neighborhoods better for long-term renters vs. others? (Jefferson County itself has ~670,000 people and the broader metro is over 1.1 M) 
      3. Is the Section 8 market saturated in Birmingham due to past investor activity? Are there streets/areas worth avoiding entirely because of crime or oversupply? Heard that investor buys have increased competition and tenant wear/tear in some areas. 
      4. Property Management:
        Which local property management companies have you used that are good with Section 8 properties? Any that do accept Section 8 and work closely with Housing Authorities? (I’ve seen some mentions of First Choice and others.) 
      5. Evictions & Operations:
        For out-of-state owners: How are evictions handled and how responsive are managers with tenant issues? Any experiences with timelines or difficulties getting issues resolved? BiggerPockets
      6. Best ZIP Codes:
        Are there particular ZIP codes in Birmingham that you’ve found cheap properties (<~$100k) that still generate strong rents or Section 8 payment standards?
      7. General Advice:
        Any advice on working with the Housing Authority (HABD, Bessemer, JC Housing) and getting units approved fast?

      Thanks in advance — looking to connect with local experts or investors familiar with Birmingham.


       To simplify it for you

      Stay south of interstate 20/59 corridor for areas where you'll actually be able to refinance based on values, demand, etc.

      The city limits has been losing population over the last couple of years due to poor leadership in the city. 

      it's not going affect Section 8 because you don't have the demand in the suburbs for housing assistance. The Section 8 population lives in Birmingham.

      You're buying to rent , so don't overcomplicate anything. Section 8 is a tenant. Leave it there.

      0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    9mo

    @Mat Yuriditsky be careful BRRRing a property for S8!

    1) S8 is usually best for Class C properties. 

    2) BRRRing a Class C property is WAY different than BRRRing a Class A property.

    Find someone that can help you understand, "Maintaining to the Neighborhood".
    - If you over-improve, you're usually throwing that money away.

    [email protected]248-209-6824
    Logical Property Management4.9458 Reviews
    WebsiteView Page
    1Reply
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