The short version: three numbers decide whether a first-time buyer in Alabama gets help: the program’s own cap, HUD’s income limit for the metro, and the FHA loan limit for the county. This page puts all three beside what a two-to-four-unit home costs in Birmingham, the only Alabama metro in the dataset, because a duplex you live in is the one purchase where the rent from the other unit counts toward qualifying.
The statewide program in Alabama
The full 83-metro survey, with the programs that failed the two-to-four-unit test, is on the down payment assistance page.
Income limits for assistance in Alabama, by metro
Why the limit moves: HUD sets a median family income for every metro each year and most programs cap eligibility at 80% of it. The published 80% figure is adjusted, so it is not always exactly 80% of the median. Birmingham is the only Alabama metro in the dataset; a buyer elsewhere in the state should look up that county’s own HUD figure.
| Metro | Area median income (4 people) | HUD 80% limit (4 people) | HUD 80% limit (1 person) |
|---|---|---|---|
| Birmingham, AL | $104,100 | $83,300 | $58,350 |
What a duplex costs in Alabama, and the income it takes
The part most buyers miss: in Birmingham the income needed for the typical duplex sits above the four-person 80% limit, so income-tested assistance, where a city or county offers it, reaches cheaper buildings than the median one. The income figure is FHA’s 31% front-end guideline on the typical duplex at 6.71% with 3.5% down, before the 75% rent credit a lender applies to the second unit.
| Metro | Duplex entry price | Typical duplex | Income needed (31%) | Versus the 80% limit (4 people) |
|---|---|---|---|---|
| Birmingham, AL | $449,000 | $449,000 | $152,600 | over |
FHA loan limits in Alabama for 2026
An FHA loan, the 3.5%-down loan most first-time buyers use, caps the loan by county and by unit count. The two-, three- and four-unit limits are higher than the single-family limit, which is why a duplex can be financed with the same small down payment at a higher price.
| Metro | 1 unit | 2 units | 3 units | 4 units |
|---|---|---|---|---|
| Birmingham, AL | $541,287 | $693,050 | $837,700 | $1,041,125 |
Where these numbers come from
- Down payment assistance: state and local program pages, each checked for two-to-four-unit eligibility in the month shown; the 83-metro survey is published as open data.
- Area median income and the 80% limit: HUD FY2026 Income Limits (Section 8), huduser.gov.
- FHA loan limits: HUD CHUMS CY2026 forward limits by county, one- to four-unit columns.
- Duplex prices: the Foothold dataset, active two-to-four-unit listings screened Jun-Aug 2026. Income needed: FHA 31% front-end guideline at 6.71% (Freddie Mac 30-year average), 3.5% down, county tax rate and modeled insurance.
- All of it, as one file: the open data page (CC BY 4.0).
Program terms change without notice and eligibility has more tests than income. Verify on the program page and with a participating lender before you count on any of it.
Questions people ask about buying a first home in Alabama
Does AHFA Step Up allow a duplex?
AHFA Step Up did not cover a two-to-four-unit home when checked in August 2026. Confirmed by the agency by email on 2026-08-13: “No, it can only be a Single-Family residence”. A duplex buyer in Alabama looks to a city or county program, or buys with the FHA 3.5% minimum and the 75% rent credit doing the work instead of a grant.
What is the income limit for down payment assistance in Alabama?
The income limit most Alabama assistance programs use is HUD’s 80% area median income figure for the metro, which for a four-person household is $83,300 in Birmingham for FY2026. Smaller households get a lower figure; $58,350 for one person in Birmingham.
What does a duplex cost in Birmingham?
Birmingham is the only Alabama metro in the dataset; the entry price for a two-to-four-unit home that passed the screen is $449,000 and the typical one is $449,000. Entry means the 25th percentile of surviving listings, not the cheapest building on the market.
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