Location: Pickens County, 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 | $1,410 |
| 5 Bedrooms | $1,636 |
| 6 Bedrooms | $1,832 |
| 7 Bedrooms | $1,979 |
| 8 Bedrooms | $2,078 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,350 | $207,287 | 0.65% | D |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 35466 are straightforward. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment in this specific ZIP code is set at $920 per month for fiscal year 2024. This figure represents the maximum amount that the Housing Choice Voucher program will pay towards the rent for a two-bedroom unit in this area. However, it's important to understand how this payment is structured and how it compares to the local market rent.
The local market rent for a two-bedroom apartment, based on Census ACS data, is approximately $621 per month. This lower figure indicates that the SAFMR is designed to cover a broader range of rental costs within the ZIP code, including higher-cost units that might be above average market rates.
A landlord should know that the voucher payment does not cover the entire rent. Tenants are required to contribute a portion of their income towards the rent. Specifically, they must pay 30% of their adjusted monthly income toward the rent. For example, if a tenant has an adjusted monthly income of $1,500, they would need to pay $450 toward the rent. The voucher would then cover the remaining balance up to the SAFMR limit.
In addition to the base rent, the voucher also includes utility allowances. These allowances vary but typically cover a significant portion of the tenant's utility expenses. Once these allowances are factored in, the total reimbursement from the voucher program can exceed the SAFMR, depending on the utilities included. However, the base rent component cannot exceed the SAFMR of $920.
To illustrate, let's assume a tenant pays $450 toward the rent and the utility allowance is $150. In this case, the voucher would reimburse the landlord $670 ($920 - $450 + $150). This brings the total reimbursement to $670, which is slightly above the local market rent of $621. Therefore, landlords in ZIP 35466 can expect a slight surplus when renting to tenants with vouchers for two-bedroom apartments.
The typical reimbursement gap or surplus for a two-bedroom apartment in ZIP 35466 is thus a surplus of around $49 per month, given the assumptions above. This surplus provides landlords with a buffer against potential fluctuations in the local rental market and ensures that they receive a stable and predictable income stream from Section 8 tenants.
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.