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 | $850 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,330 | $229,944 | 0.58% | F |
| 4BR | $1,420 | $293,004 | 0.48% | F |
U.S. Census Bureau data (2024)
In ZIP code 36521, the economics of Section 8 vouchers can be broken down into several key components. The SAFMR (Section 8 Area Fair Market Rent) for a two-bedroom apartment is set at $930 per month for fiscal year 2024. This figure is specific to this ZIP code, meaning it's tailored to reflect the local rental market conditions accurately.
The local market rent, according to Census ACS data, stands at $1,009 for a similar two-bedroom unit. This indicates that landlords who participate in the Section 8 program might find themselves renting below the market rate. However, the SAFMR is not the only factor to consider when evaluating the financial impact of a Section 8 tenant.
A Section 8 voucher pays a significant portion of the rent, but not all of it. Landlords receive reimbursement for the difference between the market rent and the SAFMR, up to the limit of $930. In ZIP 36521, if the market rent is $1,009, the voucher would cover $930 of that amount. The tenant is responsible for paying the remainder, which is typically 30% of their income.
To walk through the actual payment process, let’s assume the tenant’s portion is $150 based on their income. The total rent covered by the voucher and the tenant would be $930 + $150 = $1,080. This leaves a small gap of $1,009 - $1,080 = $29 that the landlord does not recover through the voucher program.
Additionally, landlords should account for utility allowances, which vary depending on the household size and other factors. These allowances are designed to help cover the cost of utilities such as electricity, gas, water, and sewage. For a two-bedroom unit, the utility allowance could range from $200 to $300 per month, depending on the specifics of the case. This allowance is included in the overall reimbursement calculation, meaning the landlord receives an additional sum to offset these costs.
Given the SAFMR of $930 and the market rent of $1,009, landlords in ZIP 36521 will generally see a reimbursement gap of $29 per month for a two-bedroom apartment, assuming the tenant’s portion and utility allowances are accounted for as described. This gap represents the difference between the actual market rent and the combined payment from the voucher and the tenant.
Landlords must understand that while participating in the Section 8 program may mean receiving slightly less than market rent, the stability and security of having a government-backed rental agreement can outweigh the minor financial shortfall. The program ensures timely payments and helps maintain a steady occupancy rate, which can be beneficial for small-portfolio investors.
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.