Location: Montgomery, AL | Metro: Montgomery, AL MSA
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 | $1,400 |
| 1 Bedroom | $1,420 |
| 2 Bedrooms | $1,630 |
| 3 Bedrooms | $2,090 |
| 4 Bedrooms | $2,420 |
| 5 Bedrooms | $2,807 |
| 6 Bedrooms | $3,144 |
| 7 Bedrooms | $3,396 |
| 8 Bedrooms | $3,566 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,090 | $316,435 | 0.66% | D |
| 4BR | $2,420 | $415,710 | 0.58% | F |
| 5BR | $2,807 | $526,199 | 0.53% | F |
U.S. Census Bureau data (2024)
The ZIP code 36064 is situated in a high-income neighborhood within Mobile, Alabama. With a total population of 14,103, it is primarily composed of homeowners, as only 13.2% of residents are renters. The median household income here is notably high at $119,853, reflecting a community that is well above the national average in terms of economic standing. Median home values also indicate a prosperous area, with homes valued at an average of $400,040. This places ZIP 36064 among the upper echelons of property values within the region.
Moving into the realm of rental economics, the Fair Market Rent (FMR) for the fiscal year 2024 is set at $1,610. However, the actual market rent, as measured by Zillow's ZORI index, stands significantly higher at $2,137. This discrepancy suggests that there is a notable gap between government-subsidized rents and the private market rates, which can be both an opportunity and a challenge for investors.
For hands-off voucher operators, ZIP 36064 presents a mixed scenario. While the FMR provides a stable, predictable income source, the relatively low percentage of renters means that the pool of potential tenants is limited. This could lead to slower portfolio growth and lower occupancy rates if the demand for subsidized housing does not match the supply.
In contrast, for hands-on value-add buyers, this ZIP code offers a promising landscape. The high median income and market rent suggest that there is significant demand for higher-quality, more expensive rentals. Investors who can renovate properties or offer amenities that appeal to this demographic could command premiums over the FMR, thereby increasing their returns. The key here lies in understanding the local rental market dynamics and identifying niches where value-add strategies can be effectively applied.
To conclude, ZIP 36064 is best suited for investors willing to engage actively in managing and improving their properties. The hands-off approach might struggle due to the limited number of renters and the disparity between FMR and market rent. A hands-on strategy, however, leveraging the strong economic indicators and high market rent, can yield substantial rewards for those prepared to invest time and capital into enhancing their properties.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.