Location: Washington County, AL | Metro: Mobile, AL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $880 |
| 1 Bedroom | $910 |
| 2 Bedrooms | $1,070 |
| 3 Bedrooms | $1,380 |
| 4 Bedrooms | $1,510 |
| 5 Bedrooms | $1,752 |
| 6 Bedrooms | $1,962 |
| 7 Bedrooms | $2,119 |
| 8 Bedrooms | $2,225 |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 36513 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $910. However, the market rent data is currently unavailable, which complicates a direct comparison. To proceed with the analysis, we must consider the implications of the FMR being the only available figure.
In ZIP 36513, the percentage of renters is 0.0%, indicating that homeownership is nearly universal in this area. The median home value and median income figures are also not provided, suggesting that the typical household in this region likely has sufficient financial resources to afford housing without government assistance. This context implies that the demand for rental properties, particularly those accepting Section 8 vouchers, might be low.
Given that the FMR is established at $910, landlords who accept Section 8 vouchers in ZIP 36513 can expect to receive this amount per unit for their rental properties. If the market rent were higher than the FMR, which is often the case, then accepting voucher tenants would mean renting below the open-market rate. This scenario could lead to lower yields for landlords compared to what they could potentially earn from market-rate tenants. However, since the market rent is not specified, it's crucial to focus on the FMR as the benchmark for rental income in this ZIP code.
The absence of market rent data makes it impossible to calculate the exact dollar and percentage gap between FMR and market rents. Nonetheless, it's important to note that landlords in areas where the FMR is significantly lower than market rents may face a trade-off between accepting voucher tenants and maximizing rental income. In ZIP 36513, with a high rate of homeownership, the decision to participate in the Section 8 program should be made with careful consideration of the local housing dynamics and the potential impact on property yields.
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.