Location: Jacksonville, FL | Metro: Palm Coast, 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 | $1,600 |
| 1 Bedroom | $1,620 |
| 2 Bedrooms | $1,930 |
| 3 Bedrooms | $2,370 |
| 4 Bedrooms | $2,960 |
| 5 Bedrooms | $3,434 |
| 6 Bedrooms | $3,846 |
| 7 Bedrooms | $4,154 |
| 8 Bedrooms | $4,362 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,620 | $251,060 | 0.65% | D |
| 2BR | $1,930 | $417,188 | 0.46% | F |
| 3BR | $2,370 | $598,085 | 0.4% | F |
| 4BR | $2,960 | $898,989 | 0.33% | F |
| 5BR | $3,434 | $1,488,847 | 0.23% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP 32080 in Saint Augustine, FL, reveals an interesting scenario when comparing the federally determined Fair Market Rent (FMR) to the market rent, known as Zillow's Observed Rent Index (ZORI).
With a Fair Market Rent for a two-bedroom apartment set at $1840 per month for fiscal year 2024, the annualized figure amounts to $22,080. Given the median home value in the area stands at $538,460, this translates into an implied gross yield of approximately 4.1%. This calculation is derived by dividing the annual rental income by the property value.
In contrast, the ZORI for a similar two-bedroom unit is $2,207 monthly, equating to an annualized market rent of $26,484. When this figure is used to calculate the gross yield against the median home value, it suggests a more attractive yield of about 4.9%. The difference between these two yields highlights the potential disparity between government-set rental rates and what the market demands.
Considering the local context, ZIP 32080 has a renter density of 19.4%, indicating that nearly one-fifth of the population rents rather than owns their homes. Additionally, the average days on market (DOM) for rental listings is 78 days, suggesting a moderate level of competition among renters. These factors imply that while the ZORI represents a higher gross yield, the reality of finding tenants willing to pay market rates may be constrained by the relatively low renter density.
The FMR-based yield, although lower at 4.1%, is more aligned with the federal guidelines that govern Section 8 payments. It provides a stable and predictable income stream, crucial for long-term investment planning. However, it also means that landlords might need to be more proactive in marketing their properties to attract tenants, especially in light of the 78-day DOM.
Given the data, the FMR scenario appears more realistic for Section 8 properties in ZIP 32080. While the ZORI offers a higher gross yield, the likelihood of consistently achieving those rates with Section 8 tenants is slim due to the program's fixed payment structure. Landlords should prepare for a slightly lower yield but with the security of steady federal payments.
Investors should note that the actual net operating income (NOI) will depend on various factors including property management costs, vacancy rates, and maintenance expenses. However, the gross yield comparison provides a clear starting point for evaluating the financial viability of Section 8 investments in this ZIP code.
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.