Location: Tuscaloosa, AL | Metro: Tuscaloosa, 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 | $870 |
| 1 Bedroom | $880 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,350 | $223,566 | 0.6% | D |
U.S. Census Bureau data (2024)
The ZIP code 35446 stands out in County with its unique data profile. With a population of 1,896 residents, it has a rental rate of 20.8%, indicating a modest demand for rental properties. The median income in this area is $39,313, which is relatively low compared to other regions. However, the median home value of $188,766 suggests that homeownership is still a significant aspect of the local economy.
When it comes to Section 8 vouchers, the data reveals an interesting dynamic. The Fair Market Rent (FMR) for ZIP 35446 is set at $1,100 for fiscal year 2024, whereas the market rent, according to the Census ACS, is $818. This difference indicates that landlords accepting Section 8 vouchers can potentially charge above the market rate, making it an attractive option for those looking to maximize their rental income.
The data signature for ZIP 35446 reads as stable. The relatively high median home value alongside a lower median income suggests a balanced housing market where homeownership remains attainable. Additionally, the modest rental rate implies that there isn't a significant influx or outflow of renters, which supports the notion of stability. Landlords should consider these factors when deciding whether to participate in the Section 8 program, as it offers a steady stream of tenants willing to pay a higher rent than the current market rate.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.