Location: Tuscaloosa, AL | Metro: Birmingham-Hoover, AL HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,060 |
| 1 Bedroom | $1,060 |
| 2 Bedrooms | $1,270 |
| 3 Bedrooms | $1,600 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,600 | $218,415 | 0.73% | D |
U.S. Census Bureau data (2024)
The ZIP code 35444 has a population of 4,216 residents, with 11.2% being renters. This indicates that the area is not heavily dominated by renters but rather leans towards homeownership. The median household income in this ZIP is $69,207, which provides a baseline for understanding the economic context of potential tenants.
The market rent in this area is set at $934 per month, representing approximately 16.4% of the median household income when calculated annually. This percentage suggests that while rent is a significant portion of income, it is still manageable for most households. However, compared to the Fair Market Rent (FMR) of $1120, which is the standard used for determining rental assistance under the Section 8 program for fiscal year 2024, there is a notable gap. Landlords may find that their properties are slightly above the average market rate but within the range of what is considered fair by HUD standards.
The tenant profile landlords should anticipate includes individuals who are likely to benefit from rental assistance programs. These tenants will have incomes below the median, often relying on the Section 8 voucher system to afford housing. Given the FMR threshold, these tenants' combined income and voucher amount should cover up to $1120 in rent, making properties priced around the market rate of $934 attractive. Landlords can expect a mix of working-class families and possibly some elderly or disabled individuals who qualify for such assistance.
To summarize, ZIP 35444 is not a renter-heavy area but offers opportunities for landlords who are willing to participate in the Section 8 program. With the market rent at $934 and FMR at $1120, landlords can attract tenants who receive rental assistance, ensuring that rent is affordable and competitive within the local market.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
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.