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 | $1,120 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,580 |
| 4 Bedrooms | $2,000 |
| 5 Bedrooms | $2,320 |
| 6 Bedrooms | $2,598 |
| 7 Bedrooms | $2,806 |
| 8 Bedrooms | $2,946 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,580 | $297,096 | 0.53% | F |
| 4BR | $2,000 | $338,622 | 0.59% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 36576, located within the Daphne-Fairhope-Foley, AL MSA metro, reveals a balanced rental environment. The Fair Market Rent (FMR) set by HUD for this area in fiscal year 2024 is $1170. This figure closely aligns with the market rent of $1,164 reported by the Census ACS, indicating that landlords can expect to cashflow at FMR without significant adjustments to their pricing strategies.
To further analyze the investment potential, consider the median home value in ZIP 36576, which stands at $297,366. The rent-to-price ratio can be calculated by dividing the annual rent ($1,164 x 12) by the median home value. This results in an approximate ratio of 4.7%, suggesting that the rental income generated is relatively low compared to the property's value. However, this does not necessarily indicate poor investment prospects, as it reflects the broader economic conditions of the area.
The dynamics between renting and buying properties are also relevant. With a median Days on Market (DOM) of N/A and a price-cut share of 0.3%, the data suggests that the housing market is stable and that sellers are rarely forced to lower their asking prices. These factors contribute to a predictable environment for both renters and buyers.
In conclusion, the strongest investor angle in ZIP 36576 is likely to be stability. Landlords can confidently operate under the HUD FMR without expecting significant cash flow issues, while the low price-cut share indicates a resilient housing market where property values are unlikely to fluctuate dramatically.
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.