Location: Putnam County, FL | Metro: Putnam County, FL
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 | $830 |
| 1 Bedroom | $830 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,410 |
| 4 Bedrooms | $1,480 |
| 5 Bedrooms | $1,717 |
| 6 Bedrooms | $1,923 |
| 7 Bedrooms | $2,077 |
| 8 Bedrooms | $2,181 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,090 | $135,392 | 0.81% | C |
| 3BR | $1,410 | $229,959 | 0.61% | D |
| 4BR | $1,480 | $310,013 | 0.48% | F |
U.S. Census Bureau data (2024)
To determine if a landlord should buy in ZIP 32177 (Palatka, FL) for Section 8 purposes, follow these steps:
Step 1: Does the Fair Market Rent (FMR) of $1,200 clear debt service on a $206,013 property?
If yes: The FMR of $1,200 is sufficient to cover the debt service on a property valued at $206,013. This indicates that the rental income can support the mortgage payments and other financial obligations associated with owning the property.
If no: The FMR of $1,200 does not clear the debt service on a property priced at $206,013. In this case, the rental income would be insufficient to meet the financial requirements of owning the property, making it a poor investment for Section 8.
Step 2: Is the market rent of $1,336 (ZORI) above, at, or below the FMR?
If above: The ZORI of $1,336 exceeds the FMR of $1,200, indicating that market conditions allow for rents higher than the Section 8 rate. Landlords could potentially earn additional income beyond what is covered by the Section 8 program.
If at: The ZORI of $1,336 is close to the FMR of $1,200, suggesting that market rents align closely with Section 8 rates. This scenario provides stability but limits opportunities for earning above the subsidized rate.
If below: The ZORI of $1,336 is higher than the FMR of $1,200, which means that market rents are above the Section 8 rate. However, since the question implies a comparison where ZORI might be below FMR, this would indicate a mismatch where market conditions do not favor higher rents, making it less attractive for non-subsidized tenants.
Step 3: Are 32.9% renters combined with N/A-day days on market (DOM) indicative of enough demand?
If yes: With 32.9% of residents being renters, there is a significant portion of the population looking for housing, which suggests a stable demand for rental properties. The N/A-day DOM indicates either a lack of recent sales data or a market where properties are selling quickly, both of which can be positive signs for investment.
If no: A lower percentage of renters or a high DOM would suggest weak demand. However, given the 32.9% figure, this branch is unlikely unless there are other indicators of market weakness not reflected in the data.
If it depends: The 32.9% renters ratio is a positive indicator of demand. However, without specific DOM data, it's difficult to fully assess the speed at which properties are rented out. Consider supplementary research into local real estate trends and vacancy rates to make a more informed decision.
In conclusion, the ZIP code 32177 (Palatka, FL) appears to offer a reasonable opportunity for landlords interested in Section 8 investments, contingent upon the ability of the FMR to cover debt service and the presence of strong local rental demand.
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.