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 | $1,010 |
| 2 Bedrooms | $1,170 |
| 3 Bedrooms | $1,510 |
| 4 Bedrooms | $1,610 |
| 5 Bedrooms | $1,868 |
| 6 Bedrooms | $2,092 |
| 7 Bedrooms | $2,259 |
| 8 Bedrooms | $2,372 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,170 | $51,456 | 2.27% | A+ |
| 3BR | $1,510 | $74,236 | 2.03% | A+ |
| 4BR | $1,610 | $94,370 | 1.71% | A+ |
U.S. Census Bureau data (2024)
The rent math in ZIP 36617 (Mobile, AL) does not favor landlords. The Fair Market Rent (FMR) set at $1190 for the fiscal year 2024 is higher than the actual market rent of $1,067 as reported by the Census Bureau's American Community Survey (ACS). This discrepancy means that landlords may struggle to charge the FMR without facing vacancy issues.
Acquisition costs in ZIP 36617 are relatively low, with a median home value of $57,540. However, the lack of data on days on market (DOM) and the percentage of homes that required price cuts indicates a potential risk in accurately assessing the local real estate market dynamics. Without these metrics, it is difficult to gauge how quickly properties sell and if there is significant negotiation on prices, which could affect investment returns.
Tenant demand in ZIP 36617 is robust. With a population of 11,128 and a renter share of 49.6%, there is a substantial number of individuals seeking rental housing. This high demand suggests that finding tenants should not be an issue, provided the rents align with market rates.
Verdict: ZIP 36617 presents a mixed opportunity for landlords and small-portfolio investors. While the cost of acquiring property is low, with a median home value of $57,540, and there is strong tenant demand, the primary challenge lies in the disparity between the Fair Market Rent ($1190) and the actual market rent ($1,067). Landlords must adjust their expectations and pricing strategies to match the local market conditions to ensure occupancy and profitability. Additionally, the absence of key metrics such as days on market and price cut percentages introduces uncertainty into the investment decision-making process.
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.