Location: Daphne-Fairhope-Foley, AL | Metro: Daphne-Fairhope-Foley, 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 | $1,000 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $1,980 |
| 5 Bedrooms | $2,297 |
| 6 Bedrooms | $2,573 |
| 7 Bedrooms | $2,779 |
| 8 Bedrooms | $2,918 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,220 | $200,678 | 0.61% | D |
| 3BR | $1,570 | $269,008 | 0.58% | F |
| 4BR | $1,980 | $321,107 | 0.62% | D |
U.S. Census Bureau data (2024)
ZIP 36567, located in Robertsdale, AL, within the Daphne-Fairhope-Foley, AL MSA metro area, presents an interesting opportunity for inclusion in a Section 8 portfolio strategy. This ZIP code is best categorized as a cash-flow anchor. The rationale behind this classification is rooted in the financial metrics that underpin the stability and predictability of rental income.
The Fair Market Rent (FMR) for ZIP 36567 in fiscal year 2024 is set at $1,200, which is below the average market rent of $1,313. This means that landlords participating in the Section 8 program can expect a stable income stream that, while slightly lower than market rates, provides a reliable anchor for their overall portfolio's cash flow. The difference of $113 per month between the FMR and the market rent suggests that the risk of vacancy or non-payment is mitigated by the government's subsidy, ensuring a consistent revenue source.
Furthermore, the median home value in ZIP 36567 is $268,698. This figure indicates a relatively affordable housing market, which is conducive to maintaining a manageable mortgage burden for landlords who own properties outright or finance them through traditional means. The combination of a lower FMR compared to market rent and a reasonable median home value makes this ZIP code an attractive option for anchoring cash flow in a Section 8 portfolio.
While the ZIP code does offer some potential as an appreciation play, with a low 0.2% price-cut share and a non-applicable day DOM (Days on Market), these factors do not outweigh the benefits of its role as a cash-flow anchor. Similarly, although the 22.7% renter share and median income of $66,432 suggest some diversification potential, the primary strength of ZIP 36567 lies in its capacity to provide steady, predictable rental income.
In conclusion, ZIP 36567 should be considered primarily as a cash-flow anchor within a Section 8 portfolio strategy. The consistent income from the Section 8 program, coupled with the manageable property values, ensures that landlords and small-portfolio investors can rely on this ZIP code to stabilize and support their financial goals.
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.