Location: Jacksonville, FL | Metro: Jacksonville, FL 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 | $850 |
| 1 Bedroom | $860 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,260 |
| 4 Bedrooms | $1,580 |
| 5 Bedrooms | $1,833 |
| 6 Bedrooms | $2,053 |
| 7 Bedrooms | $2,217 |
| 8 Bedrooms | $2,328 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,030 | $256,937 | 0.4% | F |
| 3BR | $1,260 | $350,916 | 0.36% | F |
| 4BR | $1,580 | $511,462 | 0.31% | F |
U.S. Census Bureau data (2024)
The Section 8 analysis for ZIP code 32046, which encompasses parts of Hilliard, FL, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 32046 in fiscal year 2024 is set at $1260, whereas the Census ACS data indicates an average market rent of $917. This creates a disparity of $343 per month, or approximately 37.5%, favoring landlords who can attract voucher tenants.
The higher FMR compared to the market rent means that landlords can potentially earn a greater yield by participating in the Section 8 program. Voucher tenants pay a portion of their income towards rent, with the government covering the rest up to the FMR. In Hilliard, where the median income is $71,563, the typical tenant's contribution would be capped at $917, leaving the remainder to be subsidized by the government. This arrangement can be particularly beneficial in a market where only 21.8% of residents are renters, suggesting a relatively low supply of rental units and potentially higher demand.
Moreover, the median home value in Hilliard stands at $354,601, indicating a generally affluent area. However, the median income suggests that many residents might still find it challenging to afford homeownership, thus relying on rental options. For small-portfolio investors, this context means that properties rented through Section 8 can offer a stable and predictable income source, mitigating the risk associated with open-market fluctuations.
However, it is important to note that while the potential for higher yields exists, there are also costs and considerations involved in renting to Section 8 tenants. These include the initial inspection requirements, ongoing compliance with HUD standards, and the possibility of lower rents than what could be achieved in the open market. Despite these factors, the current gap between FMR and market rent makes Section 8 participation a viable strategy for maximizing returns in the Hilliard rental market.
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.