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 | $890 |
| 1 Bedroom | $930 |
| 2 Bedrooms | $1,080 |
| 3 Bedrooms | $1,400 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,080 | $76,521 | 1.41% | A |
| 3BR | $1,400 | $122,392 | 1.14% | B |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 36611, located in Chickasaw, Alabama, within the Mobile, AL MSA metro area, reveals a favorable environment for cash flow. The U.S. Department of Housing and Urban Development (HUD) Fair Market Rent (FMR) for ZIP 36611 is set at $1090 for fiscal year 2024. This figure represents the maximum rental assistance payment that a landlord can receive under the Section 8 program. In contrast, the Census American Community Survey (ACS) reports an average market rent of $960 for the same area.
Given the disparity between the HUD FMR and the actual market rent, landlords and small-portfolio investors can expect their properties to cash flow comfortably when rented to voucher tenants. The higher HUD FMR allows for a significant buffer above the prevailing market rates, ensuring that landlords will be able to cover their expenses and generate a profit without having to rely on premium units. This means that even standard units should provide positive cash flow, making it an attractive option for those looking to invest in this area.
To further understand the investment potential, consider the median home value in ZIP 36611, which stands at $106,809. Using this figure, we can derive the rent-to-price ratio. With a market rent of $960, the annual rent would be approximately $11,520, resulting in a rent-to-price ratio of about 10.78%. This relatively high ratio indicates that renting out homes in this area could be more profitable compared to owning them outright, especially given the lower home values.
The dynamics of days on market (DOM) and price-cut shares do not significantly impact the decision-making process for investors in this scenario. The median DOM is listed as N/A, suggesting either limited data or a fast-moving market where homes are quickly rented or sold. Similarly, the price-cut share is reported at 0.2%, indicating that landlords rarely need to reduce rents to attract tenants. These factors suggest a stable market with strong demand for rental properties.
The strongest investor angle in ZIP 36611 is cash flow. Given the favorable gap between the HUD FMR and the market rent, along with the low median price-cut share, investors can expect consistent and reliable returns from their rental properties without the need for frequent adjustments or premium unit investments.
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.