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 | $940 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,140 | $143,023 | 0.8% | D |
| 3BR | $1,480 | $232,718 | 0.64% | D |
| 4BR | $1,570 | $355,009 | 0.44% | F |
U.S. Census Bureau data (2024)
The ZIP code 36571, located in Saraland, Alabama, falls within the larger Mobile, AL MSA metro area. When analyzing the financial metrics of 36571 against typical ZIP codes within the Mobile MSA, several key points emerge.
The Fair Market Rent (FMR) for ZIP 36571 is set at $1060 for fiscal year 2024. This figure is lower than the market rent of $1,275, indicating that the subsidized rental rates are below what the market would naturally dictate. This discrepancy suggests that landlords might see a slight reduction in rental income when participating in Section 8 programs compared to market rates.
The median home value in ZIP 36571 is $234,291, which is a critical factor in determining the attractiveness of the area for investment. If this value is below the average home value in the Mobile MSA, it could indicate that 36571 is a value pocket where properties are relatively cheaper but still offer opportunities for rental income through Section 8.
The renter share in ZIP 36571 stands at 20.7%. While this percentage is not exceptionally high, it does suggest a notable presence of renters in the area. A higher-than-average renter share can be advantageous for landlords seeking to participate in the Section 8 program, as it implies a larger pool of potential tenants who rely on housing assistance.
To accurately classify ZIP 36571 as either a value pocket, mid-tier neighborhood, or premium sub-market within the Mobile MSA, we must consider the comparative metrics of other ZIP codes within the same metro area. However, based on the provided figures, it is reasonable to infer that 36571 likely represents a value pocket within the Mobile MSA. The combination of a below-market FMR and a below-average home value, coupled with a significant renter share, aligns with characteristics often found in areas where Section 8 participation can be particularly beneficial for landlords and small-portfolio investors.
A key indicator of a Section 8 sweet spot is when an area has a high renter share along with home values that are below the metro average. In the case of ZIP 36571, while the home value is not necessarily low, the fact that the FMR is significantly lower than the market rent and the presence of a notable renter population suggests that this ZIP code could indeed be favorable for those interested in leveraging the Section 8 program.
In conclusion, ZIP 36571 appears to offer a balanced opportunity for landlords within the Mobile MSA, characterized by its affordability relative to market rents and a substantial renter base, making it a promising value pocket for Section 8 investments.
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.