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 | $990 |
| 1 Bedroom | $1,080 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,530 |
| 4 Bedrooms | $1,960 |
| 5 Bedrooms | $2,274 |
| 6 Bedrooms | $2,547 |
| 7 Bedrooms | $2,751 |
| 8 Bedrooms | $2,889 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,530 | $318,243 | 0.48% | F |
U.S. Census Bureau data (2024)
ZIP code 36574, located within the Daphne-Fairhope-Foley, AL MSA, exhibits several characteristics that define its position relative to other ZIP codes in the same metropolitan statistical area. The Fair Market Rent (FMR) for ZIP 36574 is set at $1210 for fiscal year 2024, which is notably higher than the market rent of $868. This indicates that the government's rental subsidy through the Section 8 program may be more generous compared to what the local market typically charges.
The median home value in ZIP 36574 is $291,531, which can be considered average when compared to the overall median home values across the Daphne-Fairhope-Foley, AL MSA. This suggests that while the area is not particularly expensive, it also isn't among the most affordable neighborhoods.
A key indicator for potential Section 8 activity is the renter share, which stands at 29.8% in ZIP 36574. This percentage is relatively high, pointing towards a significant portion of residents who might rely on rental subsidies. Typically, a higher renter share coupled with below-average home values can signal a prime location for Section 8 tenants. However, in this case, the home values are average, not below the metro level, so it doesn’t necessarily indicate a sweet spot for Section 8 properties but rather a balanced scenario where rental subsidies play a considerable role.
To determine if ZIP 36574 is a value pocket, a mid-tier neighborhood, or a premium sub-market within its metro, we must consider the interplay between FMR, market rent, and home values. Given that the FMR is significantly above the market rent, and the renter share is high, landlords and small-portfolio investors could find opportunities here. The disparity between FMR and market rent suggests a potential for rental income above typical market rates, making it attractive for those looking to capitalize on Section 8 subsidies. However, the average home values indicate that while the area offers good potential for subsidized rentals, it is not necessarily a premium sub-market in terms of property appreciation.
In summary, ZIP 36574 appears to be a mid-tier neighborhood within the Daphne-Fairhope-Foley, AL MSA, offering average home values and a substantial opportunity for Section 8 tenants due to its high renter share and favorable FMR-to-market rent ratio. Landlords should focus on the rental income potential rather than expecting high-end property 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.