Section 8 Fair Market Rent (FMR) for ZIP 32164 - 2027

Investment Score for ZIP 32164

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	$1,350
1 Bedroom	$1,400
2 Bedrooms	$1,790
3 Bedrooms	$2,400
4 Bedrooms	$2,630
5 Bedrooms	$3,051
6 Bedrooms	$3,417
7 Bedrooms	$3,690
8 Bedrooms	$3,875

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
2BR	$1,790	$254,962	0.7%	D
3BR	$2,400	$312,000	0.77%	D
4BR	$2,630	$352,077	0.75%	D
5BR	$3,051	$423,933	0.72%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 32164 (Palm Coast, FL) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 32164 in Palm Coast, FL, are set by HUD for the year 2026. For a two-bedroom unit, the FMR is $1,840. This amount represents 28.9% of the median household income in the area, which stands at $76,399. However, the actual rental prices in the market are significantly higher. According to Zillow, the median price for a two-bedroom home in this ZIP code is $258,804. The price-to-FMR ratio is 11.7x, indicating that the actual market rents far exceed the FMR. This discrepancy poses significant constraints for voucher holders. They would need to find landlords willing to accept a rent that is substantially below the market rate. Given the high demand and limited supply of affordable housing, this could be challenging. Additionally, landlords might be hesitant to accept vouchers due to the lower rent compared to what they could potentially charge on the open market. #### Affordability & Renter Profile In ZIP code 32164, approximately 20.4% of the population are renters, suggesting a moderate rental market presence. With a median household income of $76,399, the affordability of housing is a critical issue. The occupancy rate of 92.7% indicates a relatively tight market, where most available units are occupied, leaving fewer options for new renters. Given the high price-to-FMR ratio, it is likely that many renters are facing financial strain. The median household income suggests that residents are middle-class, but the cost of living, particularly in terms of housing, is quite high. This makes it difficult for low-income households to find affordable rentals, even with Section 8 vouchers. The market is not oversupplied; rather, it is competitive, with limited affordable options. #### Investor Angle From an investor perspective, the ZIP code 32164 presents a mixed scenario. While the median home price is high, the rental market is also robust, with a strong occupancy rate. However, the FMR is considerably lower than the actual market rents, which means that properties rented through Section 8 vouchers will generate less revenue compared to market-rate rentals. To determine if this ZIP code is cash-flow positive at FMR, we must consider the typical expenses associated with property ownership. These include mortgage payments, property taxes, insurance, maintenance, and other operational costs. Assuming a conservative estimate of these expenses, a two-bedroom unit renting at $1,840 per month might still be profitable, especially if the property was purchased at a reasonable price relative to the median home value. However, the profit margin would be much smaller compared to market-rate rentals. The investment grade for this ZIP code can be considered medium to high risk. While there is a steady demand for rentals, the reliance on FMR rates could lead to lower returns. Investors should carefully evaluate their financial goals and tolerance for risk before entering this market. #### Specific Actionable Insights 1. **Focus on Affordable Units**: Investors should target properties that are closer to the FMR rates. A two-bedroom unit renting at $1,840 per month would be more attractive to Section 8 voucher holders. This strategy could help secure long-term tenants and avoid the volatility of market-rate rentals. 2. **Consider Property Location**: Within ZIP code 32164, certain areas may have more affordable housing options. Investors should look for neighborhoods with lower median home values, as these are more likely to align with FMR rates. This approach could increase the likelihood of finding tenants who can utilize Section 8 vouchers effectively. 3. **Evaluate Property Expenses**: Before purchasing a property, conduct a thorough analysis of all associated expenses. Ensure that the FMR rental income can cover these costs and provide a reasonable profit margin. This might involve negotiating with lenders for favorable mortgage terms or selecting properties with lower tax assessments. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 32164 is to **Hold**. While the market offers opportunities, the high price-to-FMR ratio and the tight rental market present challenges. Investors should proceed cautiously, focusing on properties that offer a balance between affordability and profitability. Given the constraints, buying into this market with the sole intention of relying on Section 8 vouchers might not be the best strategy unless the investor has a clear understanding of how to manage the financials effectively.

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.