FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person * SARGEANT THOMAS J   2. Issuer Name and Ticker or Trading Symbol AVALONBAY COMMUNITIES INC [AVB] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) _____ Director _____ 10% Owner __X__ Officer (give title below) _____ Other (specify below) EVPand CFO (Last) (First) (Middle) C/O AVALONBAY COMMUNITIES, INC., 2900 EISENHOWER AVE., SUITE 300 3. Date of Earliest Transaction (Month/Day/Year) 08/11/2008 (Street) ALEXANDRIA, VA 22314 4. If Amendment, Date Original Filed(Month/Day/Year) 6. Individual or Joint/Group Filing(Check Applicable Line) _X_ Form filed by One Reporting Person ___ Form filed by More than One Reporting Person (City) (State) (Zip) Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

1.Title of Security (Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock, par value $.01 per share 08/11/2008   M   15,000 A $ 69.95 140,189.2257 (1) D   Common Stock, par value $.01 per share 08/11/2008   M   3,750 A $ 50.6 143,939.2257 (1) D   Common Stock, par value $.01 per share 08/11/2008   S   18,750 D $ 106.95 (2) 125,189.2257 (1) D   Common Stock, par value $.01 per share               1,352 (3) I Owned by spouse

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security (Instr. 3)

2. Conversion or Exercise Price of Derivative Security

3. Transaction Date (Month/Day/Year)

3A. Deemed Execution Date, if any (Month/Day/Year)

4. Transaction Code (Instr. 8)

5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5)

6. Date Exercisable and Expiration Date (Month/Day/Year)

7. Title and Amount of Underlying Securities (Instr. 3 and 4)

8. Price of Derivative Security (Instr. 5)

9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)

10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4)

11. Nature of Indirect Beneficial Ownership (Instr. 4)

Code

V

(A)

(D)

Date Exercisable

Expiration Date

Title

Amount or Number of Shares

Employee Stock Options (Right to Buy)

$ 50.6

08/11/2008

M

3,750

02/12/2005(4)

02/12/2014

Common Stock

3,750

$ 0 (4)

0 (5)

D

Employee Stock Options (Right to Buy)

$ 69.95

08/11/2008

M

15,000

02/11/2006(6)

02/11/2015

Common Stock

15,000

$ 0 (6)

43,908 (7)

D

Reporting Owners

Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
SARGEANT THOMAS J C/O AVALONBAY COMMUNITIES, INC. 2900 EISENHOWER AVE., SUITE 300 ALEXANDRIA, VA 22314			EVPand CFO

Signatures

Edward M. Schulman, as attorney-in-fact under Power of Attorney dated January 1, 2000		08/13/2008
**Signature of Reporting Person		Date

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 4(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1)	The amount of securities owned following the reported transaction reflects direct ownership of all shares of common stock, including restricted shares.
(2)	The price represents the weighted average price of the shares sold. The shares were sold within a range of $106.47 to $107.39. The reporting person will provide, upon request by the SEC staff, the issuer, or any security holder of the issuer, full information regarding the number of shares sold at each separate price.
(3)	No transaction is reported. The amount of securities owned indirectly following the reported transaction is included for information purposes only.
(4)	The options exercised were included in options granted on February 12, 2004 which became exercisable in three equal annual installments beginning on February 12, 2005.
(5)	Following the reported transaction, the reporting person holds a total of 219,806 options to purchase the issuer's common stock granted on various dates and with varying exercise prices and vesting dates.
(6)	The options exercised were included in options granted on February 11, 2005 which became exercisable in three equal annual installments beginning on February 11, 2006.
(7)	Following the reported transaction, the reporting person holds a total of 204,806 options to purchase the issuer's common stock granted on various dates and with varying exercise prices and vesting dates.

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