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 | $990 |
| 1 Bedroom | $1,030 |
| 2 Bedrooms | $1,200 |
| 3 Bedrooms | $1,550 |
| 4 Bedrooms | $1,650 |
| 5 Bedrooms | $1,914 |
| 6 Bedrooms | $2,144 |
| 7 Bedrooms | $2,316 |
| 8 Bedrooms | $2,432 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,200 | $173,376 | 0.69% | D |
| 3BR | $1,550 | $216,112 | 0.72% | D |
| 4BR | $1,650 | $287,083 | 0.57% | F |
| 5BR | $1,914 | $382,590 | 0.5% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 36693 in Mobile, Alabama, reveals key insights for potential Section 8 landlords and small-portfolio investors. First, regarding rent math, the Family Monthly Rent (FMR) for Section 8 at $1,170 is notably lower than the market rent, which stands at $1,390 according to ZORI (Zillow Observed Rental Index). This indicates that the rent differential is unfavorable for landlords seeking to maximize their income through market rates.
Second, on the affordability of acquisition, the median home value in ZIP 36693 is $222,732. While the median home value suggests an attainable entry point for property acquisition, the lack of data on days on market (DOM) and the low 0.3% price-cut share indicate a stable market where homes are not frequently discounted. This stability can be beneficial for long-term investment but may limit opportunities for acquiring properties at below-market prices.
Third, concerning tenant demand, the ZIP code has a total population of 18,726, with 30.1% of residents being renters. This significant renter share supports a robust demand for rental properties, making it easier for landlords to find tenants willing to participate in the Section 8 program. The high percentage of renters also suggests a diverse housing market, catering to various income levels and needs.
In conclusion, ZIP 36693 presents a mixed picture for Section 8 investments. The rent math does not favor landlords due to the substantial gap between the FMR and market rents. However, the acquisition cost is reasonable, and the strong tenant demand provides a solid foundation for occupancy. Landlords should weigh these factors carefully, focusing on the potential for steady tenancy over immediate financial gains. For those committed to providing affordable housing, this area offers a viable opportunity.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.