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 | $930 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,460 |
| 5 Bedrooms | $1,694 |
| 6 Bedrooms | $1,897 |
| 7 Bedrooms | $2,049 |
| 8 Bedrooms | $2,151 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,400 | $304,657 | 0.46% | F |
| 4BR | $1,460 | $455,114 | 0.32% | F |
| 5BR | $1,694 | $582,166 | 0.29% | F |
U.S. Census Bureau data (2024)
1080 is the Fair Market Rent (FMR) for ZIP code 35475 as of fiscal year 2024, indicating the maximum rental amount allowed under Section 8 guidelines. This figure is crucial for landlords who wish to participate in the program. 299,967 represents the median home value in the area, which suggests a moderate housing market where property values are stable but not exceptionally high. 7.1% is the proportion of renters in ZIP 35475, showing that while a significant portion of residents are renters, the majority still own their homes. This statistic can be pivotal for understanding the local rental demand. 108,559 is the median income level for the area, providing insight into the economic status of potential tenants and their ability to afford rent. Although the days on market (DOM) is listed as N/A, it implies that rental listings are likely moving quickly given the moderate FMR and median home value. 0.2% is the price-cut share, meaning very few landlords have had to reduce their asking prices to attract tenants, which speaks to the overall strength of the rental market. The gap between the FMR at 1080 and the Zillow Observed Rental Index (ZORI) at 2,000 highlights the disparity between what is considered fair market rent and actual market rents, suggesting that landlords might face challenges in renting properties at the ZORI rate if they want to participate in Section 8. Moreover, the median income at 108,559 indicates that tenants receiving Section 8 assistance may struggle to cover additional rent beyond the FMR. Given these factors, landlords in ZIP 35475 should carefully consider the balance between participating in Section 8 and potentially renting at higher market rates.
Based on the data, the verdict for Section 8 participation in ZIP 35475 is cautious. While there is a stable rental market, the low price-cut share and strong median home value suggest that landlords might find better financial returns outside the Section 8 program.
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.