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 | $1,080 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,700 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,310 | $170,418 | 0.77% | D |
| 3BR | $1,700 | $206,575 | 0.82% | C |
| 4BR | $1,800 | $360,643 | 0.5% | F |
| 5BR | $2,088 | $575,313 | 0.36% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 36608 in Mobile, Alabama, for fiscal year 2024 is set at $1200. This figure represents the maximum amount the U.S. Department of Housing and Urban Development (HUD) will pay toward a tenant's rent subsidy under the Section 8 program. It is important to note that this is not the rent you should charge your tenants; it is the payment standard HUD uses to determine the subsidy.
In comparison, the local Zillow Rent Index (ZORI) for the same area is $1,328. This indicates that the average rent for a property in this ZIP code is slightly higher than the FMR. However, since the FMR is lower, you must ensure that your total rent does not exceed $1200 when participating in the Section 8 program.
The renter share in this area is 45.8%, which suggests a strong demand for rental properties. With nearly half of the residents being renters, there is a significant market for affordable housing options. This high percentage of renters can be beneficial for landlords looking to fill vacancies quickly and maintain steady occupancy rates.
If you are considering purchasing a property to enter into the Section 8 program, the median home value in ZIP 36608 is approximately $239,977. This figure can help you estimate the potential acquisition cost for a property suitable for Section 8 rentals. Keep in mind that the actual price may vary based on the condition and location of the property.
Before proceeding with a Section 8 rental, it is crucial to verify that your property meets all the necessary quality standards set by HUD. These standards ensure that the property is safe, decent, and sanitary for tenants. Failure to meet these requirements can result in penalties or disqualification from the program.
In summary, with an FMR of $1200 and a ZORI of $1,328, you can expect to receive a subsidy up to $1200 per month for a tenant under the Section 8 program. The high renter share indicates strong demand for rental properties in this area, and the median home value gives you a benchmark for property costs. Ensure your property complies with HUD’s quality standards to avoid any issues.
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.