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 |
|---|---|---|---|---|
| 3BR | $1,190 | $72,920 | 1.63% | A+ |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 36612 are governed by specific financial parameters that landlords must understand. For a two-bedroom apartment in this ZIP code, the SAFMR (Small Area Fair Market Rent) for fiscal year 2024 is set at $900. This figure represents the maximum amount that the Housing Choice Voucher program will reimburse landlords for rent.
Local market rents, according to the latest Census ACS data, average $793 for a similar two-bedroom unit. This indicates that the SAFMR is higher than the prevailing market rent, which can be advantageous for landlords participating in the program.
A voucher payment consists of two parts: the tenant's contribution and the government's subsidy. The tenant is required to pay 30% of their adjusted income towards rent. If we assume an average adjusted income for tenants in ZIP 36612, the tenant's portion would typically be lower than the local market rent. The government then covers the difference up to the SAFMR limit of $900.
In addition to the base rent, there are utility allowances that vary based on the type of unit and the location. These allowances are designed to cover a portion of the tenant's energy costs, including electricity, gas, water, and sewage. For ZIP 36612, the utility allowance adds an extra layer of financial support but does not directly impact the total rent reimbursement beyond the SAFMR cap.
To illustrate, if a tenant's 30% contribution is $200, the government would subsidize the remaining $700 to reach the local market rent of $793. However, since the SAFMR is $900, the landlord could potentially charge closer to this amount without losing out on reimbursement. In such a case, the government would still only reimburse up to $900, even if the landlord charges the full SAFMR rate.
Given these numbers, landlords in ZIP 36612 can expect a reimbursement that closely matches or slightly exceeds the local market rent. With a SAFMR of $900 and a local market rent of $793, the typical reimbursement gap or surplus for a two-bedroom unit is minimal. Landlords might see a slight surplus when charging the full SAFMR rate, which would be $7 per unit over the local market rent, assuming the tenant's contribution remains consistent with the example provided.
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.