Location: Putnam County, 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 | $1,100 |
| 1 Bedroom | $1,200 |
| 2 Bedrooms | $1,420 |
| 3 Bedrooms | $1,790 |
| 4 Bedrooms | $2,270 |
| 5 Bedrooms | $2,633 |
| 6 Bedrooms | $2,949 |
| 7 Bedrooms | $3,185 |
| 8 Bedrooms | $3,344 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,420 | $202,798 | 0.7% | D |
| 3BR | $1,790 | $289,813 | 0.62% | D |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 landlord in ZIP code 32131, East Palatka, FL, include significant tenant turnover. The market rent for the area stands at $1,094, while the Fair Market Rent (FMR) for FY 2024 is set at $1,930. This substantial gap can lead to frequent changes in occupancy as tenants may find it difficult to secure the necessary funds to meet the higher FMR, resulting in a constant cycle of new applications and screenings.
Vacancy exposure is another concern. With no data available on the average days on market (DOM), it's challenging to predict how long a property might remain unoccupied. However, the high disparity between market rent and FMR suggests that landlords could face extended periods of vacancy if they rely solely on Section 8 tenants. This uncertainty can affect cash flow and necessitate careful financial planning.
Deferred maintenance is also a risk. Given the typical home value of $267,369 and the median household income of $69,416, there may be limited resources available for timely repairs and upgrades. Landlords must be prepared to invest in maintaining their properties to ensure they comply with housing quality standards required by the Section 8 program.
Despite these challenges, the high renter share of 23.5% in the area indicates a robust demand for rental housing. This translates into a potentially strong interest in Section 8 vouchers among renters, which can provide a steady stream of qualified applicants. The high concentration of renters often correlates with a greater likelihood of finding tenants who are willing and able to utilize Section 8 vouchers, thereby mitigating some of the risks associated with vacancy and turnover.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.