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 | $1,020 |
| 1 Bedroom | $1,140 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,600 |
| 4 Bedrooms | $2,030 |
| 5 Bedrooms | $2,355 |
| 6 Bedrooms | $2,638 |
| 7 Bedrooms | $2,849 |
| 8 Bedrooms | $2,991 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,600 | $315,510 | 0.51% | F |
U.S. Census Bureau data (2024)
The ZIP code 36578 stands out due to its unique data profile. With only 1,079 residents, it has an exceptionally low rental rate at 0.0%, indicating that nearly all homes in this area are owner-occupied. The median income here is relatively modest at $53,490, but the median home value is significantly high at $297,113. This combination suggests that while incomes are average, the cost of homeownership is notably higher than typical.
Moving into the specifics of Section 8 voucher economics, the Fair Market Rent (FMR) for ZIP 36578 in fiscal year 2024 is set at $1090. However, there is no available market rent data to compare against, which means landlords would need to rely solely on the FMR for setting their rental rates if they were to participate in the Section 8 program. Given the absence of market rent data, it's challenging to assess the competitiveness of these rates relative to other areas, but the FMR provides a clear benchmark for rental pricing.
The data signature for ZIP 36578 reads as stable. The high median home value indicates a strong local housing market, likely supported by steady employment and economic conditions. Despite the lack of rental activity, the presence of Section 8 vouchers could potentially stimulate some rental demand, especially for those who might otherwise struggle to afford homeownership in such a high-value market. For landlords, this stability presents a consistent environment for long-term investment, though the reliance on FMR without market comparison data introduces some uncertainty.
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.