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 | $960 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,500 |
| 4 Bedrooms | $1,590 |
| 5 Bedrooms | $1,844 |
| 6 Bedrooms | $2,065 |
| 7 Bedrooms | $2,230 |
| 8 Bedrooms | $2,342 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,160 | $143,614 | 0.81% | C |
| 3BR | $1,500 | $196,749 | 0.76% | D |
| 4BR | $1,590 | $280,370 | 0.57% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 36609 in Mobile, AL, for fiscal year 2024 is set at $1050. This figure represents the payment standard for Section 8 housing assistance, meaning that if you participate in the program, you will receive up to $1050 per month for a unit in this area. However, it's important to note that this does not dictate the rent you charge tenants; it sets an upper limit on the amount the government will pay toward rent.
Comparing this to the local market, the Zillow Observed Rent Index (ZORI), which measures actual rents paid by renters, also stands at $1050. This indicates that the FMR closely aligns with the actual rents being charged in the area, suggesting that Section 8 payments can cover the typical rent for units in ZIP 36609.
In ZIP 36609, 54.0% of residents are renters. This high percentage signals strong demand for rental properties, particularly those that offer affordable options through programs like Section 8. Given this demand, it's likely that your property will be occupied, reducing the risk of vacancy.
If you're considering purchasing a property to use as a Section 8 rental, the median home value in the area is approximately $201,853. This is the average price you might expect to pay for a home in ZIP 36609, which can help you assess whether the investment aligns with your budget and financial goals.
Before committing to a Section 8 rental property, ensure that your property meets all the necessary inspection criteria. The Housing Quality Standards (HQS) inspection is crucial because it determines whether your property is eligible for the program. If it fails, you cannot participate until it passes the inspection, which could delay your investment plans.
To summarize, the FMR of $1050 for ZIP 36609 means that you can expect up to this amount per month from the Section 8 program. With local rents at the same level, you can cover your costs effectively. High renter share suggests strong demand, and the median home value gives you a benchmark for acquisition costs. Verify your property meets HQS standards before proceeding.
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.