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 | $920 |
| 1 Bedroom | $920 |
| 2 Bedrooms | $1,100 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,450 |
| 5 Bedrooms | $1,682 |
| 6 Bedrooms | $1,884 |
| 7 Bedrooms | $2,035 |
| 8 Bedrooms | $2,137 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,390 | $229,102 | 0.61% | D |
| 4BR | $1,450 | $292,652 | 0.5% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 35453, located in the Tuscaloosa, AL HUD Metro FMR Area, does not align perfectly but shows potential. The Fair Market Rent (FMR) set at $1080 for FY 2024 contrasts with the actual market rent reported at $1,003 according to Census ACS data. This indicates that landlords might be able to charge slightly above the market average to meet the FMR, but they must ensure their properties offer value that justifies the higher rent.
Acquisition in this area remains affordable for potential investors. The median home value stands at $187,871. With the average days on market (DOM) being N/A and only a 0.2% share of homes experiencing price cuts, it suggests a stable housing market where homes are generally selling without significant discounts.
Tenant demand in ZIP 35453 is moderate. The total population is 12,620, with a 12.9% renter share. While the percentage of renters is not exceptionally high, the relatively low median home value implies that a portion of the population may find renting more feasible than homeownership, supporting a steady demand for rental properties.
Verdict: In ZIP 35453, the opportunity for Section 8 landlords and small-portfolio investors is present but requires careful consideration. Although the FMR slightly exceeds the market rent, the affordability of acquisitions and the stable market conditions provide a solid foundation for investment. Moderate tenant demand ensures a reasonable occupancy rate, making it a viable option for those willing to offer competitive rental units that justify the higher FMR. However, investors should focus on maintaining property quality to attract tenants willing to pay closer to the FMR rates.
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.