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 | $760 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,190 |
| 4 Bedrooms | $1,270 |
| 5 Bedrooms | $1,473 |
| 6 Bedrooms | $1,650 |
| 7 Bedrooms | $1,782 |
| 8 Bedrooms | $1,871 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,190 | $109,094 | 1.09% | B |
U.S. Census Bureau data (2024)
The ZIP code 36509 presents a dynamic rental market, characterized by the interplay between Fair Market Rent (FMR) and actual market rents. With an FMR set at $910 for fiscal year 2024, it's clear that the government benchmark is higher than the current market rent of $803, as reported by the Census ACS. This indicates a potential area where landlords can increase their rents to align more closely with the FMR without significantly deterring tenants.
The median home value in ZIP 36509 is $91,405. While this figure alone doesn't provide a direct comparison to rental prices, it suggests that homeownership might be relatively affordable compared to the rental market, which could influence the balance between renters and buyers. However, the significant percentage of renters—38.9%—implies a substantial portion of the population prefers or requires rental housing. This high renter share points to ongoing long-term housing pressure, as a large number of residents continue to seek rental properties over purchasing homes.
The lack of specific data on price-cut share and days on market (DOM) makes it challenging to definitively state whether supply outpaces demand or vice versa. However, the gap between the FMR and the actual market rent suggests that demand might be slightly stronger than supply, allowing landlords to potentially raise rents closer to the FMR without seeing a significant decrease in occupancy rates. Landlords and small-portfolio investors should consider these dynamics when setting rental prices and evaluating the potential for growth in this market.
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.