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 | $910 |
| 1 Bedroom | $960 |
| 2 Bedrooms | $1,110 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,530 |
| 5 Bedrooms | $1,775 |
| 6 Bedrooms | $1,988 |
| 7 Bedrooms | $2,147 |
| 8 Bedrooms | $2,254 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,110 | $91,131 | 1.22% | A |
| 3BR | $1,440 | $128,307 | 1.12% | B |
| 4BR | $1,530 | $309,386 | 0.49% | F |
U.S. Census Bureau data (2024)
The real estate landscape in ZIP 36607 (Mobile, AL) presents a nuanced picture for both landlords and small-portfolio investors. With a median home value at $113,268, the area remains affordable, which is a significant factor for attracting buyers and renters alike. However, the fact that only 0.3% of listings have been reduced indicates a stable market where sellers are maintaining their asking prices. This stability suggests that homeowners and investors have pricing power, allowing them to hold onto their properties without the need for price concessions.
The median days on market (DOM) being listed as N/A can be interpreted as either an exceptionally quick turnover rate or an incomplete dataset. In either case, it supports the notion of a seller's market where demand outstrips supply, further reinforcing the pricing power of property owners.
On the rental side, the Fair Market Rent (FMR) for ZIP 36607 is set at $1,050 for fiscal year 2024, while the current market rent, according to Census ACS data, stands at $969. This discrepancy signals a potential upward pressure on rents as the market adjusts to meet the FMR benchmark. Landlords and investors who adjust their rental rates to align with the FMR will likely see increased occupancy and better returns on investment.
For long-term investors considering holding onto properties, the setup implies a moderate appreciation thesis. The stable pricing environment coupled with the potential for rental rate increases suggests that property values could rise incrementally over the next 12-24 months. However, given the relatively low median home value, the appreciation may be limited to single-digit percentages annually, barring any significant economic shifts or policy changes that could impact the local housing market.
In summary, the current data points towards a market where property owners maintain considerable pricing power, both in terms of selling and renting. The gap between FMR and current market rents offers a clear path for rental rate adjustments, which could lead to improved cash flows and gradual property value appreciation. These factors make ZIP 36607 a viable option for those looking to invest in a stable, albeit modestly appreciating, real estate market.
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.