Location: Mobile, AL | Metro: Mobile, AL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $850 |
| 1 Bedroom | $890 |
| 2 Bedrooms | $1,040 |
| 3 Bedrooms | $1,340 |
| 4 Bedrooms | $1,430 |
| 5 Bedrooms | $1,659 |
| 6 Bedrooms | $1,858 |
| 7 Bedrooms | $2,007 |
| 8 Bedrooms | $2,107 |
U.S. Census Bureau data (2024)
To classify ZIP code 36663, we need to analyze the data available regarding rental market conditions, specifically focusing on yield and stability. The Fair Market Rent (FMR) for ZIP 36663 in fiscal year 2024 is set at $1090. This figure represents the median rent for a standard unit in the area and is a key indicator of potential rental income.
However, the data provided does not include market rents or home values, which are essential for comparing against the FMR to gauge the yield potential. Without these figures, it's challenging to determine if there's an opportunity for higher yields through rental properties priced above the FMR or if there's a risk of lower yields due to market rates being below the FMR. Similarly, the lack of data on the percentage of renters, days on market (DOM), and median income limits our ability to assess stability comprehensively.
In the context of yield, ZIP 36663 offers a baseline with the FMR of $1090. For stability, typically, areas with a higher percentage of renters and shorter DOM indicate a stable market, where tenants are likely to find housing quickly and stay longer. A median income figure would also help understand the financial health of the population and their ability to afford rent at the FMR level.
Given the incomplete data, ZIP 36663 cannot be definitively classified into a high-yield/low-stability flip-style market or a steady-cashflow zone. However, the presence of FMR data suggests that the government has identified this area as needing some form of rental assistance, indicating that it might lean towards a market where traditional cash-flow investments could face challenges without subsidies.
To make a more informed decision, landlords and small-portfolio investors should seek additional local data on rental markets and housing values to compare against the FMR. This will provide a clearer picture of the yield and stability characteristics of ZIP 36663.
Data Sources: FMR data from HUD (2027). 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.