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 |
|---|---|---|---|---|
| 2BR | $1,030 | $133,502 | 0.77% | D |
| 3BR | $1,330 | $215,745 | 0.62% | D |
| 4BR | $1,420 | $312,592 | 0.45% | F |
U.S. Census Bureau data (2024)
ZIP 36541, located in Grand Bay, Alabama, within the Mobile, AL Metropolitan Statistical Area (MSA), presents a unique opportunity for inclusion in a Section 8 portfolio strategy. This area is best classified as an appreciation play.
The Fair Market Rent (FMR) for ZIP 36541 in fiscal year 2024 is set at $1300, while the current market rent stands at $933. This indicates that there is a significant gap between the government-subsidized rent rates and the actual market rates, providing a strong financial cushion for landlords participating in the Section 8 program. However, the primary focus for categorizing ZIP 36541 as an appreciation play lies in its real estate market dynamics.
With a median home value of $215,581, the real estate in this ZIP code is relatively affordable compared to many other areas within the United States. The low price-cut share of 0.3% suggests that homes are selling close to their listed prices, indicating a robust local housing market. While the Days on Market (DOM) is not available, the low price-cut share can be seen as a positive sign for potential appreciation. Real estate values in areas where homes sell quickly without significant price reductions often experience steady growth over time, making ZIP 36541 an attractive choice for investors looking to build long-term equity.
The median income in ZIP 36541 is $66,236, which supports a healthy local economy capable of sustaining property values. Additionally, with a 14.9% renter share, the area has a diverse mix of homeowners and renters, reducing the risk associated with high concentrations of either group. This diversity also means that there is a consistent demand for rental properties, including those supported by Section 8 vouchers.
In summary, ZIP 36541 is an appreciation play due to its strong market fundamentals, including a favorable spread between FMR and market rents, a low price-cut share indicative of a healthy housing market, and a diverse economic base that supports both homeownership and rental demand. These factors make it an excellent addition to a Section 8 portfolio strategy aimed at long-term capital appreciation.
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.