Section 8 Fair Market Rent (FMR) for ZIP 32034 - 2027

Investment Score for ZIP 32034

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,360
1 Bedroom	$1,380
2 Bedrooms	$1,640
3 Bedrooms	$2,010
4 Bedrooms	$2,510
5 Bedrooms	$2,912
6 Bedrooms	$3,261
7 Bedrooms	$3,522
8 Bedrooms	$3,698

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,380	$420,631	0.33%	F
2BR	$1,640	$518,172	0.32%	F
3BR	$2,010	$609,547	0.33%	F
4BR	$2,510	$708,312	0.35%	F
5BR	$2,912	$855,087	0.34%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 32034 (Fernandina Beach, FL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 32034, as of 2026, is set at $1500 for a two-bedroom unit. This figure represents 18.3% of the median household income of $98,583, indicating that it is relatively affordable for those earning the median income. However, the actual rental market in Fernandina Beach is significantly higher. The Zillow median price for a two-bedroom unit is $510,399, which translates into a monthly rent of approximately $4253 based on typical mortgage payments and property taxes. This means that the price-to-FMR ratio is 28.4x, making it extremely challenging for Section 8 voucher holders to find suitable housing within their budget. For instance, a voucher holder would need to find a landlord willing to accept a rent of $1500, which is only about 35% of the actual market value. This discrepancy highlights a significant constraint for voucher holders, who may struggle to secure housing that meets their needs and fits within the voucher limits. #### Affordability & Renter Profile With a population of 41,029, Fernandina Beach has a relatively small number of renters, accounting for only 17.2% of the total population. The occupancy rate stands at 81.7%, suggesting a moderately tight rental market where demand is close to supply but not overly strained. Given the high median household income of $98,583, the typical renter profile likely includes individuals or families with higher incomes, who can afford the premium rental rates. This makes it even more difficult for lower-income households, especially those relying on Section 8 vouchers, to compete in the rental market. The high cost of living and rental prices indicate that the market is not particularly favorable for low-income renters, who may face challenges in finding affordable housing options. #### Investor Angle From an investor perspective, the ZIP code 32034 presents a mixed picture. While the median home price is high at $510,399, the FMR for a two-bedroom unit is $1500. If an investor were to purchase a property at the median price and rent it out at the FMR, they would be facing a significant shortfall in covering the mortgage and other expenses. Based on the price-to-FMR ratio of 28.4x, it is clear that renting at FMR levels would not be financially viable for most properties in this area. Therefore, the ZIP code is unlikely to be cash-flow positive at FMR levels, and the investment grade would be considered low for Section 8-focused investors. #### Specific Actionable Insights 1. **Target Lower-Rent Properties**: Investors should focus on acquiring properties that are priced below the median, specifically targeting units that can be rented out at or slightly above the FMR. For example, a two-bedroom unit priced around $300,000 could potentially generate a monthly rent of $2500, which is still above the FMR but might be more feasible for voucher holders. This strategy could help bridge the gap between the high market rents and the FMR, making it more attractive for both landlords and tenants. 2. **Consider Multi-Family Units**: Given the high FMR for larger units, such as three-bedroom ($1850) and four-bedroom ($2320), investors might consider multi-family properties where individual units can be rented at different rates. This diversification can help manage the financial risk associated with renting at FMR levels. For instance, a four-bedroom unit could be rented out at $2320, which is still a significant discount compared to the median home price but might be more manageable for the owner. 3. **Engage with Local Housing Authorities**: To better understand the local dynamics and potential opportunities, investors should engage with the local housing authorities. They can provide insights into the availability of Section 8 vouchers and any local initiatives aimed at increasing affordable housing. Additionally, understanding the specific requirements and processes for becoming a Section 8 landlord can help investors navigate the complexities of this market segment. #### Bottom Line Given the high median home prices and the significant gap between actual rents and FMRs, the ZIP code 32034 is not recommended for Section 8-focused investors looking for immediate cash flow positivity. The investment grade is low due to the financial unviability of renting at FMR levels. However, investors interested in long-term strategies or those willing to target lower-priced properties and engage with local housing authorities might find some opportunities. Overall, the recommendation is to **skip** this ZIP code for short-term investments and to **hold** or **buy** selectively if aligned with broader real estate goals and strategies.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.