Location: Mobile, AL | Metro: Mobile, AL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $940 |
| 1 Bedroom | $980 |
| 2 Bedrooms | $1,140 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,570 |
| 5 Bedrooms | $1,821 |
| 6 Bedrooms | $2,040 |
| 7 Bedrooms | $2,203 |
| 8 Bedrooms | $2,313 |
The analysis of ZIP code 36689, located within the Mobile, AL MSA, reveals several key points regarding its viability for Section 8 investments.
The rent math does not work favorably due to the lack of market rent data. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $1090. Without specific market rent figures, it's impossible to compare if the FMR aligns with what tenants might pay privately. This uncertainty can affect the profitability of Section 8 properties compared to market-rate rentals.
Acquisition affordability remains unclear given the missing data on median home values, days on market (DOM), and the percentage of homes that have been listed with price cuts. These metrics are crucial for understanding the local real estate market and determining whether it is a good time to buy property for Section 8 tenancy.
Tenant demand is also ambiguous without population numbers and the percentage of residents who are renters. Such data would provide insight into how many potential Section 8 tenants could be available in the area.
Verdict: ZIP code 36689 presents significant challenges for Section 8 real estate investment due to incomplete data on market rents, median home values, days on market, and tenant demographics. Landlords and small-portfolio investors must seek additional local market intelligence before making informed decisions about acquiring properties in this area. The current data suggests an inability to confidently assess the financial viability and demand for Section 8 properties here.
Data Sources: FMR data from HUD (2027).
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.