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 | $1,090 |
| 1 Bedroom | $1,140 |
| 2 Bedrooms | $1,320 |
| 3 Bedrooms | $1,710 |
| 4 Bedrooms | $1,810 |
| 5 Bedrooms | $2,100 |
| 6 Bedrooms | $2,352 |
| 7 Bedrooms | $2,540 |
| 8 Bedrooms | $2,667 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,320 | $77,185 | 1.71% | A+ |
| 3BR | $1,710 | $162,376 | 1.05% | B |
| 4BR | $1,810 | $197,770 | 0.92% | C |
U.S. Census Bureau data (2024)
The classification of ZIP code 36613, located in Prichard, AL, reveals a balance between yield potential and market stability, making it a zone that offers opportunities for both steady cash flow and higher returns, depending on the investment strategy.
Yield Analysis: The Fair Market Rent (FMR) for ZIP 36613 in fiscal year 2024 is set at $1,180. This figure is below the market rent of $1,257, indicating a modest gap where landlords can potentially charge slightly above the FMR to maximize rental income. However, the median home value stands at $147,092, which is relatively low compared to other areas. This suggests that the acquisition cost for properties in this area is also lower, thereby increasing the potential yield when considering the purchase price and rental income.
Stability Analysis: With 26.9% of the population being renters, the market has a decent tenant base but falls short of the ideal 30-40% range often sought by investors for long-term stability. The average household income of $52,080 is another key factor; while it's sufficient to support the current market rent, it does not provide a large buffer against economic downturns. The lack of data on the number of days on market (DOM) means there is uncertainty about how quickly properties might be rented out once they become available.
In summary, ZIP 36613 presents itself as a middle-ground opportunity. It is not a high-yield/low-stability flip-style market due to the absence of extreme fluctuations in rental demand and supply. Instead, it leans towards a steady-cashflow zone given the reasonable rental income relative to the property values. However, the slightly lower renter percentage and average income suggest that while cash flow is steady, it may require more attention to tenant screening and property management to ensure sustained occupancy rates and mitigate risks associated with economic changes.
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.