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 | $191,365 | 0.62% | D |
| 4BR | $1,270 | $269,954 | 0.47% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 36544 within the Mobile, AL MSA reveals several key points for landlords and small-portfolio investors.
The rent math does not work favorably. The Fair Market Rent (FMR) set at $960 for the fiscal year 2024 is higher than the market rent reported by the Census ACS, which stands at $847. This discrepancy suggests that tenants might be hesitant to pay the higher FMR rate, leading to potential vacancy issues unless the property offers unique amenities or is in high demand due to its location.
Acquisition appears affordable given the median home value of $186,289. However, the lack of data on days on market (DOM) and the low percentage of homes needing price cuts (0.2%) indicates a stable housing market. While the median home value is reasonable for investment, landlords should be cautious about overpaying for properties, as the market seems to be steady without significant pressure to reduce prices.
Tenant demand is moderate. With a total population of 10,521, and 23.0% of residents being renters, there is a sizeable but not overwhelming pool of potential tenants. This suggests that while finding tenants is feasible, competition among rental properties could be stiff, necessitating well-maintained and competitively priced units.
In conclusion, ZIP 36544 presents a mixed picture for real estate investment. The higher FMR compared to market rent poses challenges for achieving optimal occupancy rates. Acquisition costs are reasonable, yet the stable market conditions imply that bargains may be rare. Tenant demand is present but competitive, requiring landlords to offer attractive living spaces at market rates to succeed. Overall, careful consideration of these factors is necessary to make informed investment decisions in this area.
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.