Location: Chambers County, AL | Metro: Auburn-Opelika, AL HUD Metro FMR Area
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 | $900 |
| 1 Bedroom | $1,150 |
| 2 Bedrooms | $1,280 |
| 3 Bedrooms | $1,630 |
| 4 Bedrooms | $1,710 |
| 5 Bedrooms | $1,984 |
| 6 Bedrooms | $2,222 |
| 7 Bedrooms | $2,400 |
| 8 Bedrooms | $2,520 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,280 | $152,339 | 0.84% | C |
| 3BR | $1,630 | $227,997 | 0.71% | D |
| 4BR | $1,710 | $310,955 | 0.55% | F |
U.S. Census Bureau data (2024)
The ZIP code 36854 encompasses a part of the city of Mobile, Alabama, known for its blend of urban amenities and suburban comfort. With a total population of 16,537, it is a moderately sized neighborhood where approximately 26.8% of residents are renters. The median household income in this area stands at $55,973, indicating a middle-class community. The median home value is $177,325, which reflects a modest but stable housing market.
Moving into the specifics of rental economics, the Fair Market Rent (FMR) for ZIP 36854 in fiscal year 2024 is set at $1,060. This figure aligns closely with the market rent reported by the Census Bureau's American Community Survey, also at $1,060. This parity suggests that the rental market is well-regulated and predictable, with little variance between government-set rates and actual market conditions.
Given these economic indicators, ZIP 36854 would be an ideal location for a hands-off voucher operator. The low percentage of renters and stable median income suggest a steady demand for subsidized housing without significant volatility. However, for a hands-on value-add buyer looking to improve properties and increase rents, this area might present limited opportunities due to the tight alignment between FMR and market rent, leaving little room for premium pricing.
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.