Location: Tuscaloosa, AL | Metro: Greene County, 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 | $990 |
| 1 Bedroom | $990 |
| 2 Bedrooms | $1,190 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,500 | $241,085 | 0.62% | D |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 35463 for Section 8 investment, follow these steps:
If the annual debt service is less than $12,960 ($1080 x 12 months), then the answer is yes. The FMR will sufficiently cover the mortgage payments. However, if the debt service exceeds this amount, the answer is no. The FMR is insufficient to meet the financial obligations associated with the property.
The data indicates that the market rent is not available for ZIP 35463. Without this information, it's impossible to accurately compare market rents to the FMR. In this scenario, the answer is it depends. You would need to conduct further research to determine if the market rent is above, at, or below the FMR. If the market rent is above the FMR, it suggests strong demand, but if it's below, it might indicate weaker rental market conditions.
In ZIP 35463, 6.1% of residents are renters, and the DOM data is not available. With only 6.1% of the population renting, the demand for rental properties is relatively low. This could make it difficult to find tenants even if the FMR covers your debt service. However, without DOM data, it's unclear how quickly rental units are being filled. If the DOM is low, it implies strong demand despite the low percentage of renters. If DOM is high, it indicates weak demand, making it harder to justify an investment in this area.
Based on the provided data, the decision to invest in ZIP 35463 hinges on the answers to these questions. Ensure that the FMR can cover your debt service, and investigate market rent levels and DOM to fully understand the rental market dynamics in this area.
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.