Location: Palm Coast, 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 | $1,160 |
| 1 Bedroom | $1,290 |
| 2 Bedrooms | $1,630 |
| 3 Bedrooms | $2,230 |
| 4 Bedrooms | $2,520 |
| 5 Bedrooms | $2,923 |
| 6 Bedrooms | $3,274 |
| 7 Bedrooms | $3,536 |
| 8 Bedrooms | $3,713 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,630 | $158,557 | 1.03% | B |
| 3BR | $2,230 | $299,481 | 0.74% | D |
| 4BR | $2,520 | $328,817 | 0.77% | D |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 32110, located in Bunnell, FL, revolves around the comparison between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $1270, which matches the market rent reported by the Census ACS for the same period. This parity indicates that there is no explicit gap in dollars or percentage between the two figures.
In the absence of a gap where the FMR exceeds the market rent, it is important to understand the implications for landlords and small-portfolio investors. When FMR is higher than the market rent, it means that voucher tenants can offer a stable source of income, often leading to a higher yield compared to non-voucher tenants. The stability comes from the government's role in ensuring timely payment of the voucher amount, which can be particularly beneficial in areas where rental vacancy rates are low.
However, in the scenario where FMR is lower than the market rent, as is not the case here, landlords would have to accept a lower rent rate than what the market could potentially bear. This situation can lead to reduced profitability per unit and may require careful management to ensure that the costs of maintaining and managing the property do not exceed the income generated by the voucher program. In such cases, landlords might seek to optimize other aspects of their investment, such as lowering maintenance costs or increasing occupancy rates.
Bunnell, FL has a rental population of 28.6%, indicating a significant portion of residents who rely on rental properties. The median home value in the area is $285,788, while the median income stands at $57,485. These economic factors suggest that many residents may find it challenging to afford homeownership, thereby making rental properties, especially those participating in the Section 8 program, a critical component of the local housing market.
Given the parity between FMR and market rent, landlords in ZIP 32110 should consider the benefits of the Section 8 program, including the potential for a steady stream of income and the opportunity to serve a segment of the population that might otherwise struggle to find affordable housing. The program can also provide a competitive edge in a market where 28.6% of residents are renters, and the median income is relatively low compared to the median home value.
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.