Location: Tuscaloosa, AL | Metro: Tuscaloosa, AL HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $930 |
| 1 Bedroom | $940 |
| 2 Bedrooms | $1,120 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,470 |
| 5 Bedrooms | $1,705 |
| 6 Bedrooms | $1,910 |
| 7 Bedrooms | $2,063 |
| 8 Bedrooms | $2,166 |
U.S. Census Bureau data (2024)
The analysis of ZIP code 35487, located in the HUD Metro FMR Area of Tuscaloosa, AL, reveals several key points regarding its viability for Section 8 real-estate investment.
First, does the rent math work? The Fair Market Rent (FMR) for ZIP 35487 in fiscal year 2024 is set at $1130. However, the market rent for the area is currently not available, making it difficult to directly compare the two figures. Despite this lack of data, the FMR provides a baseline for what is considered reasonable rent for low-income households in the area.
Second, is acquisition affordable? Unfortunately, the median home value, days on market (DOM), and the percentage of homes that required price cuts are not provided. Without these specific metrics, assessing the affordability of acquiring properties in this ZIP code is challenging. Landlords should conduct further research to understand the local real estate market dynamics.
Third, is there tenant demand? The population of ZIP 35487 is 1,950, which indicates a relatively small community. The percentage of renters in the area is also not specified, but given the size of the population, it's crucial to determine the proportion of residents who might be eligible for Section 8 assistance. This will help gauge the potential tenant pool.
Verdict: While the Fair Market Rent of $1130 offers a clear guideline for acceptable rental rates under Section 8 programs, the lack of detailed market data complicates a thorough assessment of property acquisition costs and tenant demand. Investors must delve deeper into the local real estate and rental market conditions to make an informed decision about investing in ZIP 35487. The small population size suggests that the success of such investments could hinge critically on the availability of rental units and the eligibility of residents for housing assistance.
Data Sources: FMR data from HUD (2027). 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.