Location: Mobile, AL | Metro: Mobile, 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 | $970 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,300 |
| 3 Bedrooms | $1,710 |
| 4 Bedrooms | $1,730 |
| 5 Bedrooms | $2,007 |
| 6 Bedrooms | $2,248 |
| 7 Bedrooms | $2,428 |
| 8 Bedrooms | $2,549 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,710 | $214,009 | 0.8% | D |
U.S. Census Bureau data (2024)
In ZIP code 36505, the Section 8 economics are governed by the Specific Area Fair Market Rent (SAFMR) for a two-bedroom apartment, which is set at $1360 for the fiscal year 2024. This SAFMR rate is specifically tailored for this ZIP code, meaning it reflects the unique rental conditions present in 36505. Unfortunately, the local market rent for the area is not available, which makes direct comparisons challenging.
The Section 8 Housing Choice Voucher Program provides financial assistance to low-income families, seniors, and people with disabilities to help them afford safe and decent housing. For landlords, understanding how the voucher payments work is crucial. The voucher does not cover the entire rent; rather, it pays the difference between the tenant's contribution and the actual rent charged, up to the limit of the SAFMR.
A tenant participating in the Section 8 program is typically required to pay 30% of their adjusted monthly income towards rent. Additionally, there are utility allowances that vary based on the size of the unit and the region. In ZIP 36505, these allowances can be factored into the overall payment structure.
To illustrate, if a tenant's adjusted monthly income is $1,000, they would contribute $300 toward the rent. If the SAFMR for a two-bedroom apartment is $1,360, then the voucher would cover the remaining $1,060, assuming the rent does not exceed this amount. However, if the rent is higher than the SAFMR, the landlord will not receive the excess amount from the voucher program.
Landlords should also be aware that the voucher payment includes an allowance for utilities, which can vary. In some cases, this utility allowance can be substantial, reducing the tenant's out-of-pocket expenses and potentially increasing the overall payment received by the landlord.
In summary, for a two-bedroom apartment in ZIP 36505, the typical reimbursement gap or surplus depends on the actual rent charged compared to the SAFMR of $1360. If the rent is lower, the landlord might receive the full rent plus any utility allowances, leading to a surplus. Conversely, if the rent is higher, the landlord will face a gap where the voucher does not cover the excess, leaving the landlord to either absorb the loss or find alternative solutions.
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.