Section 8 in Mobile, Alabama: Yield and the Insurance Catch
Mobile, in Mobile County on the Gulf coast, is a B-grade Section 8 market — reliable cash flow with the right property, worth screening regularly. The median 3-bedroom voucher pays $1,395/mo against a $140,000 supported price, and Alabama's roughly 0.4% property tax keeps the tax side light across the 8 screened ZIP codes.
The honest catch is insurance. Gulf-coast wind coverage runs higher than the rest of Alabama, around 1.6%, so that premium is the line item that decides the deal here — underwrite it before you assume the spread holds. Screen any Mobile address free on CloseHound to see how it scores against the $140,000 supported price with insurance factored in.
Mobile HUD Section 8 voucher rents by ZIP (FY2026)
Official HUD Small Area Fair Market Rents — the voucher ceiling a landlord can collect in each ZIP, by bedroom count.
| ZIP code | 2-bed | 3-bed | 4-bed |
|---|---|---|---|
| 36603 | $900/mo | $1,180/mo | $1,210/mo |
| 36605 | $1,100/mo | $1,440/mo | $1,470/mo |
| 36606 | $1,020/mo | $1,330/mo | $1,360/mo |
| 36607 | $1,050/mo | $1,370/mo | $1,400/mo |
| 36608 | $1,240/mo | $1,620/mo | $1,650/mo |
| 36609 | $1,090/mo | $1,420/mo | $1,450/mo |
| 36610 | $900/mo | $1,180/mo | $1,210/mo |
| 36617 | $1,140/mo | $1,490/mo | $1,520/mo |
Source: HUD FY2026 SAFMR. CloseHound underwrites live listings against these exact ceilings.
Gulf-coast wind insurance runs higher than the rest of AL — watch the premium.
More Section 8 markets in Alabama
Mobile Section 8 FAQ
What's the Section 8 voucher rent for a 3-bed in Mobile?+
The median 3-bedroom voucher in Mobile pays about $1,395/mo for FY2026, with screened ZIPs ranging widely from $1,180 to $1,620.
Is Mobile a good Section 8 market?+
It's a B on CloseHound — reliable cash flow with the right property. The yield is real, but you have to underwrite the higher coastal insurance to know whether a given deal works.
What's the insurance drag on a Mobile rental?+
Mobile's Gulf-coast wind insurance runs around 1.6%, higher than the rest of Alabama. That premium, more than the ~0.4% property tax, is what makes or breaks the cash flow here.
How do I find cash-flowing Section 8 deals in Mobile?+
Use CloseHound's free screener to weigh a property's price against the $1,395/mo median 3-bed voucher and the $140,000 1%-rule supported price, with the coastal insurance built in.
Screen Mobile deals free
See which Mobile listings actually cash-flow on the voucher — underwritten and ranked by Deal Score.
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