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 | $36,859 | 2.5% | A+ |
| 3BR | $1,190 | $47,961 | 2.48% | A+ |
| 4BR | $1,270 | $61,432 | 2.07% | A+ |
U.S. Census Bureau data (2024)
ZIP code 36610 encompasses a portion of Prichard, Alabama, characterized by a modest residential setting with a significant rental market presence. The area has a total population of 9,877, with 56.3% of residents being renters, indicating a strong demand for affordable housing options. The median household income in this region stands at $30,529, which is notably lower than the national average, reflecting the economic profile of the neighborhood. Median home values are also relatively low, at $38,221, further emphasizing the affordability of the area.
The economic landscape of ZIP 36610 is particularly favorable for Section 8 investors due to the disparity between Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $890, whereas the Census American Community Survey (ACS) reports an average market rent of $766. This gap presents a compelling opportunity for investors to capture a higher rent premium while still adhering to the guidelines of the Section 8 program.
Given these factors, ZIP 36610 aligns well with both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the stable demand for rental properties and the alignment with Section 8 parameters ensure consistent cash flow without the need for extensive property management. On the other hand, value-add buyers can leverage the lower median home values to acquire properties at a discount, renovate them, and then benefit from the higher FMR, thus creating additional profit margins. The high percentage of renters and the economic conditions suggest that there is ample room for both strategies to succeed in this market.
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.