Location: Mobile, AL | Metro: Mobile, AL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,080 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,310 |
| 3 Bedrooms | $1,700 |
| 4 Bedrooms | $1,800 |
| 5 Bedrooms | $2,088 |
| 6 Bedrooms | $2,339 |
| 7 Bedrooms | $2,526 |
| 8 Bedrooms | $2,652 |
U.S. Census Bureau data (2024)
The ZIP code 36688 presents several challenges for landlords considering Section 8 investments. Firstly, tenant turnover can be a significant issue when comparing the market rent, which is currently unavailable, to the $1200 Fair Market Rent (FMR) for fiscal year 2024. This discrepancy can lead to frequent changes in occupancy, increasing administrative burdens and costs associated with tenant screening and lease renewals.
Vacancy exposure is another critical risk factor. With the number of days on market (DOM) also unavailable, it's difficult to gauge how quickly properties might be filled, especially if there is a mismatch between market rents and FMRs. Extended vacancies can significantly impact cash flow and profitability.
Deferred maintenance is a notable concern due to the lack of data on typical home values and median incomes in ZIP 36688. Properties with lower values or in areas where median income is insufficient to cover maintenance costs may require additional financial outlays from landlords to keep units habitable and compliant with housing standards.
Despite these risks, the high renter share of 100.0% suggests that there is robust demand for rental housing in this area. This strong rental market often translates into a higher demand for Section 8 vouchers, which can help stabilize occupancy rates and mitigate the risk of extended vacancies. Additionally, the consistent demand for rentals can provide a steady stream of applications, making it easier to find tenants who meet the necessary criteria for Section 8 participation.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.