Location: Tuscaloosa, AL | Metro: Tuscaloosa, AL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $980 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,180 |
| 3 Bedrooms | $1,490 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
The analysis of ZIP code 35402, located within the Tuscaloosa, AL HUD Metro FMR Area, reveals several key points that landlords and small-portfolio investors should consider.
First, regarding the rent math, the Fair Market Rent (FMR) set at $1130 for the fiscal year 2024 does not provide a direct comparison against the market rent due to the lack of available market rent data. However, the FMR can serve as a benchmark for setting rental prices to attract tenants eligible for Section 8 housing assistance.
Second, the acquisition affordability is difficult to assess due to the absence of specific data on median home values, days on market (DOM), and the percentage of homes that have been discounted in price. Without these metrics, it's impossible to determine if the area offers good opportunities for purchasing properties at affordable rates.
Third, concerning tenant demand, the data indicates an unknown population size and an unspecified percentage of renters. This means there is no concrete information to evaluate the potential number of tenants looking for rental housing in this ZIP code, which is crucial for understanding the demand for rental properties.
In conclusion, while the Fair Market Rent of $1130 for ZIP 35402 provides a guideline for setting rental prices, the lack of detailed market data, including median home values, days on market, percentage of homes with price cuts, and precise demographic information, makes it challenging to fully assess the viability of investing in this area. Landlords and investors should seek out more comprehensive local real estate and demographic data before making investment decisions in ZIP 35402.
Data Sources: FMR data from HUD (2027).
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.