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 | $760 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,190 |
| 4 Bedrooms | $1,270 |
| 5 Bedrooms | $1,473 |
| 6 Bedrooms | $1,650 |
| 7 Bedrooms | $1,782 |
| 8 Bedrooms | $1,871 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $920 | $51,654 | 1.78% | A+ |
| 3BR | $1,190 | $99,251 | 1.2% | B |
| 4BR | $1,270 | $120,923 | 1.05% | B |
U.S. Census Bureau data (2024)
A skeptical investor considering investing in ZIP 36603 (Mobile, AL) might have several concerns regarding the financial feasibility and market demand. Here are some common objections addressed with the available data:
Objection 1: Will Fair Market Rent (FMR) of $890 cover the mortgage on a $64,723 home?
The FMR of $890 for ZIP 36603 can indeed cover a mortgage payment on a home priced at $64,723. To determine this, we need to calculate the potential monthly mortgage payment. Assuming a typical mortgage rate of 4% and a 30-year term, the monthly mortgage payment would be approximately $307. This figure does not include property taxes, insurance, and maintenance costs, which should also be factored into the overall expense. However, with an FMR of $890, the total rental income can comfortably exceed the mortgage payment.
Objection 2: Is there enough renter demand at 69.6%?
The 69.6% renter occupancy rate in ZIP 36603 suggests a substantial demand for rental properties. While this percentage indicates that nearly 70% of the housing units are occupied by renters, it is crucial to consider the broader context of the local economy and job market. High renter demand is often indicative of a robust employment base and a population that prefers renting over buying. However, the data does not provide detailed insights into the stability of these jobs or the trend of renter demand over time. It is advisable to conduct further research into local economic indicators and historical trends to better assess future demand.
Objection 3: Will vouchers keep pace with $736 market rents?
The voucher amount of $890 is above the current market rent of $736, providing a buffer for landlords. This means that voucher holders can potentially afford to pay the full market rent, leaving landlords less exposed to the risk of non-payment. However, the long-term sustainability of this scenario depends on whether the voucher amounts will continue to increase in line with market rents. The data does not offer projections for future voucher amounts or rent increases, so caution is advised when making assumptions about long-term financial stability.
In summary, while the FMR of $890 can cover the mortgage on a $64,723 home, and the 69.6% renter occupancy rate suggests strong demand, the sustainability of these factors requires deeper analysis. Vouchers currently exceed market rents, but their future alignment with increasing rents remains uncertain. These points highlight both the opportunities and risks present in ZIP 36603 for real estate investment.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.