  We report a photon shot-noise-limited (SNL) optical magnetometer based on
amplitude modulated optical rotation using a room-temperature $^{85}$Rb vapor
in a cell with anti-relaxation coating. The instrument achieves a
room-temperature sensitivity of $70$ fT/$\sqrt{\mathrm{Hz}}$ at $7.6$ $\mu$T.
Experimental scaling of noise with optical power, in agreement with theoretical
predictions, confirms the SNL behaviour from $5$ $\mu$T to $75$ $\mu$T. The
combination of best-in-class sensitivity and SNL operation makes the system a
promising candidate for application of squeezed light to a state-of-the-art
atomic sensor.
