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 | $930 |
| 1 Bedroom | $970 |
| 2 Bedrooms | $1,130 |
| 3 Bedrooms | $1,460 |
| 4 Bedrooms | $1,550 |
| 5 Bedrooms | $1,798 |
| 6 Bedrooms | $2,014 |
| 7 Bedrooms | $2,175 |
| 8 Bedrooms | $2,284 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,130 | $304,582 | 0.37% | F |
U.S. Census Bureau data (2024)
The ZIP code 36602 in Mobile, AL, is predominantly a renter-heavy area, with 74.7% of the population renting their homes. This indicates a strong potential for Section 8 tenants, as the high percentage of renters suggests a robust demand for rental housing assistance programs.
The median household income in ZIP 36602 stands at $41,420, which is notably lower than the national average. The market rent for the area is $1,648 per month, representing approximately 49% of the median monthly income. This high rent-to-income ratio can be challenging for many residents, making the availability of rental assistance crucial for maintaining affordability.
In comparison, the Fair Market Rent (FMR) for ZIP 36602 is set at $900 per month for FY 2024. This figure represents the maximum amount that a Section 8 voucher holder can pay towards their rent, indicating that landlords who aim to attract these tenants must ensure their rental properties are priced competitively within this range.
A landlord in ZIP 36602 should expect tenants who rely on Section 8 vouchers to manage their living expenses. These tenants will typically have low incomes, often below the median household income of $41,420, and they will require the government subsidy to afford the market rent of $1,648. Given the high percentage of renters and the relatively low median income, landlords should prepare for a tenant pool that heavily depends on financial assistance to secure housing.
To summarize, ZIP 36602 is well-suited for landlords and investors looking to cater to a renter-heavy market with significant demand for Section 8 vouchers. The typical tenant profile will consist of individuals and families who need rental assistance due to the high cost of housing relative to their income levels.
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.