Section 8 Fair Market Rent (FMR) for ZIP 36560 - 2027

Location: Mobile, AL | Metro: Mobile, AL MSA

Investment Score for ZIP 36560

N/A

Monthly Rent (2BR)

$1,100

Median Price (2BR)

$N/A

1% Rule

Annual Yield

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$910
1 Bedroom	$950
2 Bedrooms	$1,100
3 Bedrooms	$1,420
4 Bedrooms	$1,510
5 Bedrooms	$1,752
6 Bedrooms	$1,962
7 Bedrooms	$2,119
8 Bedrooms	$2,225

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$1,420	$117,863	1.2%	A

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

2,858

Median Household Income

$43,426

Housing Units

1,250

Renter Percentage

17.4%

Occupancy Rate

82.4%

Renter Occupied

179

ZIP code 36560, located within the Mobile, AL MSA, presents an interesting profile compared to typical ZIP codes in the area. Its Fair Market Rent (FMR) for fiscal year 2024 is set at $970, which is notably higher than the market rent of $787. This suggests that the area might be slightly overvalued in terms of rental pricing, possibly due to government-set standards being higher than what the market naturally dictates.

The median home value in 36560 stands at $104,062, which is lower than the average home value across the broader Mobile, AL MSA. This indicates that the ZIP code could be considered a more affordable option within the metro, potentially attracting first-time buyers or those seeking lower-cost housing.

A key point of interest is the 17.4% renter share, which is a significant portion of the population. High renter shares can indicate areas with a strong demand for rental properties, especially if they are supported by government programs such as Section 8. The combination of a below-average home value and a relatively high renter share could signal a favorable environment for landlords and investors looking to capitalize on the rental market.

To determine whether 36560 is a value pocket, a mid-tier neighborhood, or a premium sub-market within the Mobile, AL MSA, consider the following:

Value Pocket: With a lower home value and a substantial renter share, it's likely that 36560 serves as a value pocket. This means it offers more affordable options for both homeowners and renters, making it attractive for those who need to manage costs carefully.
Mid-Tier Neighborhood: While the median home value is lower, the FMR being above the market rent suggests some level of middle-ground stability. However, given the other factors, this classification seems less fitting.
Premium Sub-Market: The ZIP code does not fit into the premium category based on its lower home values and the fact that its market rents are below the FMR.

In conclusion, ZIP code 36560 appears to be a value pocket within the Mobile, AL MSA, offering opportunities for landlords and investors to benefit from a high renter share and relatively low property values. This makes it an area worth considering for those looking to enter the rental market with a focus on affordability and government-supported rental programs.

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.