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 | $1,210 |
| 1 Bedroom | $1,210 |
| 2 Bedrooms | $1,450 |
| 3 Bedrooms | $1,830 |
| 4 Bedrooms | $1,910 |
| 5 Bedrooms | $2,216 |
| 6 Bedrooms | $2,482 |
| 7 Bedrooms | $2,681 |
| 8 Bedrooms | $2,815 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,830 | $245,359 | 0.75% | D |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 35452 in fiscal year 2024 is set at $1,320. This figure represents the payment standard for Section 8 vouchers, meaning it's the maximum amount the Housing Choice Voucher program will pay towards your tenant's rent. However, this is not the total rent you can charge; it's the portion covered by the voucher.
In comparison, the average market rent in ZIP 35452 is $1,286 according to the latest Census American Community Survey (ACS) data. This suggests that the FMR is slightly above the local average, which could be beneficial if you're looking to cover your costs without relying solely on private tenants.
The 8.8% renter share indicates that nearly 9 out of every 100 residents in the area are renters. This points to a steady demand for rental properties, although it's relatively low compared to many urban areas. Despite this, the presence of Section 8 can help stabilize occupancy rates and ensure consistent income.
Acquiring a property in this ZIP code could cost around $196,049 based on recent median home values. For a landlord or small-portfolio investor, this price tag might seem reasonable given the potential for stable returns through Section 8 participation.
Before committing to a Section 8 rental, verify that your property meets all the required standards for habitability and safety. The Housing Quality Standards (HQS) set by the Department of Housing and Urban Development (HUD) must be satisfied to ensure eligibility and avoid any issues with contract compliance.
In summary, the FMR of $1,320 provides a benchmark for covering your costs, while the local average rent of $1,286 gives an idea of market conditions. With an 8.8% renter share, there's a solid demand for rentals, and the acquisition cost of approximately $196,049 makes it a feasible investment. Just make sure your property passes the HQS inspection to proceed smoothly.
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.